Cablegate: Ethiopia: Response On Illicit Cash Couriers

VZCZCXRO1559
RR RUEHROV
DE RUEHDS #3283 3121414
ZNR UUUUU ZZH
R 081414Z NOV 07
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC 8499
INFO RUCNIAD/IGAD COLLECTIVE

UNCLAS ADDIS ABABA 003283

SIPDIS

SIPDIS

DEPARTMENT FOR EEB/ESC/TFS, S/CT AND INL

E.O. 12958: N/A
TAGS: EFIN KTFN KCRM PREL PTER ET
SUBJECT: ETHIOPIA: RESPONSE ON ILLICIT CASH COURIERS

REF: STATE 152088

1. SUMMARY: Per reftel, post is providing updated information on
illicit cash couriers and the actions Ethiopia is taking to prevent
bulk cash smuggling. Ethiopia has laws in place prohibiting cash
smuggling and is in the process of developing forms requiring that
cash be declared upon entry. However, few specific actions to
interdict cash smugglers appear to be underway. The National Bank of
Ethiopia has agreed to the terms of reference for a U.S. Department
of the Treasury technical assistance program designed to address
anti-money laundering and counter-terrorist financing including bulk
cash smuggling. END SUMMARY.

2. Answers to Specific Questions

--Status of host nation laws specifically criminalizing bulk cash
smuggling and key elements of those laws:

Ethiopia's criminal code prohibits bulk cash smuggling. The
jurisdiction to investigate such crimes falls under the Federal
Police Crime and Forensic Investigation Main Department.

-- Cross-border reporting requirements for inbound/outbound movement
of currency and monetary instruments:

According to U.S. Treasury Advisors, the Ethiopian Customs Authority
is in the process of creating a cash declaration form in
collaboration with the National Bank of Ethiopia. As of this
writing, there is no requirement to list currency on the form filled
out to enter or exit Ethiopia. Additionally, Ethiopia's porous
borders pose a challenge in preventing cash smuggling, as reporting
requirements are only effective at official entry/exit points.

--Host country actions to interdict potential cash smugglers or
throw risk into the system:

Ethiopia is actively developing currency reporting requirements.
There is clear jurisdiction within Ethiopian law enforcement
entities to investigate such crimes.

--Status of investigations into bulk cash smuggling:

According to the head of the Investigation Department, the police
arrest people with counterfeit Ethiopian Birr from time to time. No
additional investigations were mentioned.

--Prosecutions under bulk cash smuggling laws:

None mentioned.

--How mission elements have engaged relevant partners to develop and
execute a cash courier interdiction plan:

Both the establishment of a legal requirement for cross-border
currency declarations and modifications of the existing form are
priority items in the work plan for the U.S. Department of Treasury
technical assistance program, as is raising awareness generally that
this method of money laundering is still among the most common of
methods.

3. COMMENT: The recent signing of the terms of reference for the
U.S. Department of Treasury technical assistance program after five
months of negotiations indicates the Government of Ethiopia's
openness to addressing vulnerabilities in terms of anti-money
laundering and counter-terrorist financing. Treasury's program will
include work to strengthen Ethiopia's defenses against bulk cash
smuggling. END COMMENT.

YAMAMOTO

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