06ASTANA689, KAZAKHSTAN: DEFACTO DELAY IN AML LAW?

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06ASTANA689.
Reference ID Created Released Classification Origin
06ASTANA689 2006-11-29 09:36 2011-08-30 01:44 UNCLASSIFIED Embassy Astana

VZCZCXRO1098
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #0689 3330936
ZNR UUUUU ZZH
R 290936Z NOV 06
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 7804
INFO RUCNCIS/CIS COLLECTIVE
RHMFISS/HQ USEUCOM VAIHINGEN GE//ECJ5//
RUEKDIA/DIA WASHINGTON DC//DHO-2//
RHMFISS/HQ USCENTCOM MACDILL AFB FL//CCJ5//
RUEKJCS/SECDEF WASHINGTON DC//USDP EURASIA//
RUEATRS/DEPT OF TREASURY WASH DC//IET//

UNCLAS ASTANA 000689 
 
SIPDIS 
 
STATE FOR INL/AAE AND INL/C; SCA/CEN (O'Mara) 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR ASEC KCOR KCRM PREL KZ
SUBJECT: KAZAKHSTAN: DEFACTO DELAY IN AML LAW? 
 
Ref: A) 05 Almaty 4353 B) Almaty 1437 
 
1. Summary: Enactment of an extension of the Property Legalization 
Law until April 1, 2007 is likely to create similar delay in the 
enactment of the anti-money laundering (AML) and counter terrorism 
financing law currently under consideration in the Kazakhstani 
Mazhilis (lower house of parliament).  Should this prognosis hold 
true, the AML law delay will push off an already twice delayed 
strengthening of the AML regime and creation of the Kazakhstani 
Financial Intelligence Unit.  End summary. 
 
2.  On November 17, President Nazarbayev signed into law a three 
month extension of the Property Legalization Law originally enacted 
on July 5, 2006. Nazarbayev originally called for the extension of 
the term of the property legalization law at the opening of the fall 
session of the Mazhilis on September 1, claiming the original 
measure was passed hastily, contained errors, and provided too 
little notification to the public or the terms of compliance.  The 
Property Legalization law was enacted to legalize a wide range of 
property and assets, including real property, capital assets, 
movable property, and securities.  It will regularize the status 
these assets which were obtained since independence and, it is 
widely believed, which were acquired illegally during the 
privatization period. 
 
3. Observers believe that this extension is likely to cause a delay 
in enactment of AML legislation, because once the AML legislation 
becomes law, attempts to register previously unrecorded assets would 
be considered prima facie evidence that some type of financial 
malfeasance took place which could put the owner of those assets at 
risk of prosecution. 
 
4.  The AML draft legislation was originally introduced to the 
Mazhilis in September 2005 but was immediately delayed.  It first 
ran into resistance from deputies who claimed the structure of the 
legislation required further review (Ref A).  Subsequently, during a 
study tour by members of the Mazhilis AML Working Group to 
Copenhagen, post heard concerns about the powerful role in AML and 
the FIU accorded to the Procurator General's Office (Ref B). 
 
5. Comment:  While it is still unclear whether the AML Working Group 
will modify the draft AML law, it appears the implications of the 
law were sufficiently understood so that the necessity for the 
Property Legalization law became apparent.  End comment. 
 
ORDWAY

Wikileaks

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: