Cablegate: Anti-Money Laundering Bill Introduced in Parliament

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FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 5356
INFO RUEHAS/AMEMBASSY ALGIERS 4225
RUEHEG/AMEMBASSY CAIRO 1903
RUEHMD/AMEMBASSY MADRID 5616
RUEHNK/AMEMBASSY NOUAKCHOTT 3366
RUEHTU/AMEMBASSY TUNIS 9136
RUEHCL/AMCONSUL CASABLANCA 2444
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS RABAT 002241

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KTFN EFIN PTER PGOV MO
SUBJECT: ANTI-MONEY LAUNDERING BILL INTRODUCED IN PARLIAMENT

REF: A. RABAT 356

B. RABAT 730

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accordingly.

1. (SBU) Summary: Morocco's draft bill on anti-money
laundering was formally presented to parliament by Justice
Minister Bouzoubaa on November 20, and will be taken up by
the chamber's Justice Committee the week of December 11. Key
parliamentarians predict passage of the measure, but are
divided on whether this can occur in the current
parliamentary session, which ends in mid-January. If not,
passage could slip to early summer, as parliament will not
reconvene until April. End Summary.

2. (SBU) With an increasing focus on corruption in government
and business (a recent poll sponsored by Transparency
International showed that 6 out of 10 Moroccans paid bribes
to secure public services in the past year), government
contacts portray the anti-money laundering law as part of a
series of measures aimed at "moralizing public life." Other
laws in this group include bills to increase government
transparency by requiring that government officials disclose
their assets and a draft law on public tenders that seeks to
make the process more open and less vulnerable to
manipulation. Banking regulators note too that the
anti-money laundering draft also forms part of the effort to
bring the overall financial system into line with
international standards, following earlier laws that reformed
the banking sector and granted independence to the Bank
al-Maghrib.

3. (U) The press has devoted extensive attention to the
anti-laundering measure, noting that while the government
originally hoped to secure its passage in 2005,
inter-ministerial squabbling (reftels) postponed it by over a
year. They have focused on the increased vigilance that the
law will require from banks (one senior banker in Casablanca
jokingly told us "bankers will not be able to sleep after its
passage" because of the added scrutiny it will require them
to exercise). More seriously, banking regulators note that
while most banks already exercise this vigilance, the law
will provide them with a legal framework in which to exercise
it, while also ensuring that they operate on equal footing.

4. (SBU) In meetings on November 30 and 31 with Econ
Counselor, Mustapha Hanine, President of the Finance and
Economic Development Committee of parliament's lower chamber,
and Abdelkbir Tabih, President of that Chamber's Justice
Committee, both predicted that the anti-money laundering
measure would ultimately be passed by Parliament. Tabih,
whose committee will take up the bill the week of December
11, was more nuanced on whether that could be accomplished in
the current legislative session, however. He noted the
existence of widespread concerns among lawmakers about the
impact of the bill on Morocco's large informal economy, which
is variously estimated at up to 40 percent of Morocco's
economic activity. Hanine saw less of an issue with regard
to the informal sector, and expressed confidence that with a
proper push from the government the law can move swiftly.
Both he and Tabih noted that Bouzoubaa and Finance Minister
Oualalou are expected at the December 11 hearings, to
emphasize the importance the Moroccan government attaches to
the measure.

5. (SBU) Comment: We continue to monitor the bill's progress
and are weighing what further advocacy efforts can best
contribute to its passage. Given the press of legislative
business, however, Tabih's prediction of April passage is
more likely than passage before the current session ends in
mid-January. End Comment.
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Riley

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