DEPARTMENT OF THE TREASURY 

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE 

2005 REPORT TO CONGRESS 

Section 129 of the Foreign Assistance Act of 1961, as amended, authorizes the establishment of 

a Department of the Treasury program to provide technical assistance to foreign governments 

and central banks of developing or transitional countries. This legislation requires Treasury to 

prepare and submit this report on the conduct of the Treasury International Affairs Technical 

Assistance program. 
EXECUTIVE SUMMARY 

The Department of the Treasury, through its Office of Technical Assistance (OTA), provides 

technical assistance and policy advice to select reform-minded countries seeking to strengthen 

the management of public finances. Most of these countries are in the process of development or 

transformation. Others have suffered severe deterioration of their financial institutions as a result 

of war, civil strife, or prolonged neglect. In all cases, OTA’s assistance aims to increase 

transparency and accountability, reduce corruption, and strengthen the development of marketbased policies and practices that support growing economies and stable democracies. 

OTA services focus on five core disciplines: budget policy and management, financial 

enforcement, banking and financial services, government debt issuance and management, and tax 

policy and administration. Projects may include assisting with the development or revision of 

laws and regulations, the development of broad strategies, the design and implementation of 

financial systems to promote macroeconomic and fiscal stability, and the building of processes 

for efficient resource allocation, transparency, and sustainable private-sector growth. Financial 

enforcement is addressed through initiatives which combat money laundering, corruption, and 

the financing of terrorism. 

This report addresses the entire spectrum of OTA program activities in 2005, from stand-out 

successes to engagements that, for a variety of reasons, did not go as well as had been hoped. 

Overall, 2005 was a good year. It is not always possible, however, to carry all engagements to a 

successful conclusion. Sometimes projects fail to meet expectations, even after diligent 

preparation. The development of a project can be slowed or halted as political changes alter 

counterparts’ enthusiasm for reform; and though OTA prefers to stay the course, even in difficult 

times, it will suspend an engagement if commitment to reform wanes or terms of reference are 

not observed. 

Key Program Developments

In 2005, OTA activities were marked by a number of developments. 

• Increasingly, engagements drew on OTA’s ability to provide an integrated assistance 

package, utilizing experts from a number of its five core disciplines. This was a defining and 

positive feature of programs in Liberia, Zambia, and Paraguay, among others. OTA expects 

this trend to continue and will seek to reinforce it. 

• OTA continued to engage in post-conflict countries such as Afghanistan, Iraq, Liberia, and 

Haiti, and in some cases expanded its involvement. In Iraq, OTA made tangible progress on 

the creation of a nation-wide electronic payments system that will support the financial and 

economic integration of the country. Looking forward, OTA is taking steps to strengthen its 

ability to provide high-quality technical assistance in such challenging environments. 

• OTA reduced its engagement in Central and Eastern Europe and the Former Soviet Union, 

reinforcing a trend that has been evident for several years. OTA has shifted focus from areas 

where assistance has become relatively less needed and has increased its involvement in 

regions where needs are acute. 

• Since the terrorist attacks on September 11, 2001, Treasury has aggressively addressed issues 

surrounding the financing of international terrorism by expanding its traditional anti-money 

laundering and anti-corruption program to include asset identification and the tracking of 

financing for terrorist organizations. In this context, OTA’s Financial Enforcement team has 

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redoubled its efforts to build capacity internationally and is now the largest of the five core 

disciplines in terms of funding and projects. During 2005, OTA Financial Enforcement drew 

extensively on expertise from the other four disciplines within OTA, emphasizing a 

comprehensive approach to financial enforcement. 

• In 2005, OTA took additional steps to strengthen performance tracking and management. 

Every OTA project workplan has a set of concrete objectives, verifiable progress milestones, 

and targets for project completion. Monthly reports, required for each project, track progress 

against the workplan. 

Country Highlights

OTA efforts resulted in noteworthy successes in 2005. 

 

• OTA Government Debt advisors assisted in a number of “first ever” achievements, helping 

Benin to issue its first treasury bill, Georgia to obtain its first sovereign credit rating, Jordan 

to prepare its first annual debt issuance calendar, and Uganda to benefit from the first buyback of Government debt. 

• In Turkey, OTA Banking and Financial Services advisors supported the first large sale of 

bank assets held by the country’s asset management unit. U.S. financial institutions 

participated actively in the successful auction. 

• In South Africa, an OTA Budget advisor helped authorities develop and implement a 

comprehensive set of expenditure controls at the national and provincial level. As a result, a 

three-year trend of growing (and unexplained) budget shortfalls was halted, and 2005 

expenditures were in line with levels budgeted by the National Treasury. 

• In Liberia, OTA Tax advisors helped Liberian authorities install and make use of a wireless 

radio link between the Ministry of Finance and Central Bank. The link provides a secure 

mechanism for a broad range of financial controls and services. The system will be 

expanded in 2006 to link the seaport and airport with customs and tax authorities. 

• OTA Financial Enforcement advisors helped the Comptroller General of Peru establish an 

internal investigations/integrity unit for the prosecution of corruption, and provided followon investigative training. In Latin America, the Caribbean and other regions, Enforcement 

and Tax advisors worked in tandem to help authorities assess and strengthen legal and 

regulatory regimes for casinos and gaming – a major and rapidly growing industry in many 

countries. 

As noted above, certain engagements fell short of expectations and had to be suspended or 

postponed. For example: 

• In Thailand, Treasury OTA and other USG agencies withdrew technical assistance when it 

became apparent that the authorities’ anti-money laundering efforts were being driven by an 

incentive compensation program that placed personal gain before policy objectives. 

• In Uganda, despite impressive progress in other areas, OTA’s Enforcement team suspended 

its two years of assistance because of a lack of commitment by the government to pass 

critical anti-money laundering legislation. 

• Most recently, in West Bank/Gaza, assistance aimed at increasing financial transparency and 

accountability was put on hold after the January 2006 elections. 

A more extensive description of country highlights appears in the body of this report. 

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Funding provided through the Treasury International Affairs Technical Assistance (TIATA) 

component of the 150 Account appropriation has grown to be the largest source of OTA 

financial resources for pursuing its global mission. In Fiscal Year 2005, OTA received $19.4 

million from Congress in TIATA funding plus an additional $3.5 million from other U.S. 

agencies that co-funded Treasury’s TIATA projects. This made it possible for OTA to undertake 

72 individual projects in 49 countries. 

REPORT 

The Department of the Treasury (Treasury), through its Office of Technical Assistance (OTA), 

provides professional policy advice and technical assistance to reform-minded countries seeking 

to strengthen the management of public finances. OTA is highly selective when identifying 

nations in which to engage. Most countries that receive technical assistance from Treasury are in 

the process of development or transformation, while others have suffered severe deterioration of 

their financial institutions as a result of war, civil strife, or prolonged neglect, and require serious 

financial reform. In all cases, OTA’s assistance aims to increase transparency and 

accountability, reduce corruption, and strengthen the development of market-based policies and 

practices that support growing economies and stable democracies. In this way, OTA supports 

the Secretary of the Treasury in implementing U.S. international economic policy as well as 

broader U.S. foreign policy objectives. 

OTA services cover a range of public financial management activities. These include: revenue 

enhancement, budget policy and administration, banking supervision and regulation, cash 

management, government debt issuance and management, and initiatives focused on financial 

system integrity. Projects may include assisting with the development or revision of laws and 

regulations, advising on macroeconomic and monetary policy issues, developing broad 

strategies, designing and implementing financial systems to promote macroeconomic and fiscal 

stability, and building processes for efficient resource allocation, transparency, and sustainable 

private-sector growth. Financial enforcement addresses such activities as money laundering, 

financing of terrorism, and corruption. Consistent with the requirements of the Foreign 

Assistance Act of 1961, sec. 129(b), expert advisors in five core disciplines, working under OTA 

direction, provide these comprehensive services. The core disciplines are: 

• Budget Policy and Management, 

• Banking and Financial Services, 

• Government Debt Issuance and Management, 

• Tax Policy and Administration, and 

• Financial Enforcement. 

The relationships among the five disciplines are mutually supportive. In countries where a 

serious breakdown of financial institutions has occurred, advisors from all five disciplines may 

be working simultaneously on a broad front. This is often the case in post-conflict or failed-state 

engagements. This cross-disciplinary capability of OTA provides the program with flexibility 

and capacity to respond quickly to challenging and difficult situations. OTA advisors are an 

experienced group of experts with skills developed in both the private and public sectors who 

work together collaboratively to address complex financial management challenges. 

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OTA advisors have a high degree of credibility with the ministries to which they are assigned. 

They function as confidential experts who provide advice, counsel, recommendations, coaching, 

and professional guidance to reach the economic sector goals set by the countries themselves. At 

times this may involve assistance in developing and executing plans to meet requirements of 

international financial institutions. In some cases the assistance may focus on carrying out 

reforms that are initiated by the host government. 

OTA selects projects to be funded by TIATA that will support capacity building, democratic 

governance, and economic reform. In order to increase the likelihood of positive and permanent 

change, Treasury requires that for each engagement a mutually-agreed-upon Terms of Reference 

(TOR) be established with a recipient country prior to assignment of an advisor, and that the 

advisor be linked with policy-level, reform-minded counterpart officials. These practices were 

forged through experience gained in Treasury’s technical assistance work in Central and Eastern 

Europe and the Former Soviet Union. They have proven their utility as OTA has broadened its 

program geographically to meet challenges in Africa, Asia, and Latin America, as well as 

expanded its scope to include combating the financing of terrorism after the September 2001 

terrorist attacks. 

While much of the information in this report concerns OTA engagements that were successful, 

the report also covers engagements that did not live up to expectations. Even after diligent 

preparation, a project can encounter difficulties because of internal issues in the host country. 

Also, the shape of a project can vary over time as political changes alter enthusiasm for reform. 

Finally, though OTA prefers to stay the course even when encountering difficulty, an 

engagement will be suspended if agreements are not fulfilled or terms of reference are not 

observed. In 2005 OTA encountered a few setbacks and difficulties. For example: 

• After four years and multiple cross-team assessment missions to the West Bank/Gaza, 

three teams had prepared terms of reference, identified advisors, and developed initial 

workplans for engagement in early 2006. The engagement was placed on hold, however, 

after the January election. 

• In Thailand, OTA joined its U.S. law enforcement partners from State, Justice, and 

Homeland Security in withdrawing technical assistance when it became apparent that the 

anti-money laundering efforts of the Thai financial intelligence unit were being driven by 

personal gain as the result of an unusual incentive compensation program. 

• After two years of technical assistance by the OTA Financial Enforcement team, the 

Government of Uganda (GOU) failed to pass promised anti-money laundering 

legislation. While OTA’s Banking and Debt teams both made progress on other projects 

in Uganda, the Enforcement team suspended its efforts until the GOU demonstrates 

renewed political will to pursue anti-money laundering legislation. If that were to occur, 

OTA would weigh the merits of a re-engagement by its Financial Enforcement team. 

OTA manages its worldwide technical assistance program through a staff headquartered in 

Washington, D.C., and through the placement of regional and senior advisors at locations that 

allow for both efficient and effective support. The cost of program management is limited to 15 

percent of funds allocated for OTA technical assistance. 

Treasury believes that OTA’s established reputation for swift response and practical results 

grows out of its solid focus on financial management, its adherence to principles established in 

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U.S. law, its integrated approach, its cooperation with other U.S. agencies and international 

donors, its cadre of expert advisors, and its strong administrative and financial controls. 

TIATA GLOBAL OBJECTIVES 

The TIATA legislation called for assistance to reform-minded governments of developing and 

transitional countries around the world, and it is this funding that makes it possible for OTA to 

fulfill that global mission. Beginning with the initial TIATA appropriation from Congress, 

Treasury expanded the reach of its technical assistance operations to include a select and limited 

number of countries in Asia and Africa, as well as Central and Latin America. OTA now has 

primarily focused on these regions, along with the Greater Middle East, where its presence is 

increasing. Even though OTA has other sources of financial support, TIATA funding has grown 

to be the single largest resource available to OTA for pursuing its mission. 

Since the inception of TIATA in 1999, OTA has used TIATA resources to provide technical 

assistance to nearly 80 countries around the world. In Fiscal Year 2005, Treasury advisors 

worked on 72 TIATA-funded individual projects in 49 countries. Table A attached to this report 

summarizes the execution of the Fiscal Year 2005 TIATA budget and shows the projects for 

which funding was allocated in Fiscal Year 2005. 

In addition to TIATA funding, OTA receives financial resources through the Support for East 

European Democracy (SEED) Act for work in countries in Eastern and Central Europe, and 

through the Freedom Support Act (FSA) for countries in the former Soviet Union. SEED and 

FSA funds have been declining at an accelerated pace in recent years as countries have become 

self-sufficient, and U.S. Government technical assistance has no longer been needed. 

OTA also receives funding through supplemental appropriations. This funding, which has been 

used for such countries as Afghanistan, Haiti, Iraq, and Liberia, is, of course, available only as 

exceptional needs arise. 

Table B attached to this report itemizes OTA funding from non-TIATA sources. 

FISCAL YEAR 2005 TIATA PROGRAM 

Countries and projects for which Fiscal Year 2005 TIATA funds would be used were selected 

according to a careful process that was informed by real, on-the-ground conditions in potential 

recipient countries. OTA prepared an initial internal Fiscal Year 2005 financial plan comprised 

of summary information on projects proposed for funding. The proposals, which originated from 

several sources, were compiled and submitted by each of OTA’s five core disciplines. These 

sources included foreign governments, U.S. embassies, USAID missions, and assessment 

missions conducted by OTA advisors. Among other factors, special consideration was given to 

continuing current projects that demonstrated substantial and measurable results. The Fiscal Year 

2005 preliminary financial plan contained nearly 80 proposed projects with an estimated cost of 

$28.6 million, an amount well above available resources. 

In order to make best use of available funds, Treasury reached out to other sources and in some 

cases found partners that were committed to the project objectives and willing to provide cofinancing. In this way Treasury was able to implement a technical assistance program larger than 

it could have undertaken on its own. 

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OTA then conducted an intensive internal selection process to identify projects with the greatest 

potential to result in significant reform. These projects were selected for funding while the rest, 

though meriting serious consideration, were set aside due to a lack of resources. The final results 

of the project selection process are displayed in Table A, Fiscal Year 2005 Budget Execution 

Plan. Seventy-two separate projects are grouped geographically or as global projects in the 

following categories: Latin America and the Caribbean, Africa, and Asia. 

In addition to country-specific projects, budgetary allocations were made for senior and regional 

advisors, global anti-terrorist activities, global information technology assistance in support of 

combating financial crime, Financial Enforcement assessment missions, and cross-discipline 

regional missions. 

The final version of the Fiscal Year 2005 Budget Execution Plan consists of $19.4 million in 

TIATA funds leveraged by an additional $3.5 million contributed by USAID missions and 

others. 

AFRICAN FOCUS

Under the Fiscal Year 2005 Budget Execution Plan, Sub-Saharan Africa continued to be a region 

of significant focus. Treasury committed $5.2 million to this region in Fiscal Year 2005. This 

amount represented about 27 percent of all funding for TIATA-funded projects. TIATA funds 

for projects in Sub-Saharan Africa were combined with $1.5 million of USAID funds (down 

from $1.9 million in Fiscal Year 2004) to create a combined program budget of $6.6 million for 

the region. 

Treasury has a strong rationale for committing so much of its TIATA resources to the SubSaharan region. First, Sub-Saharan Africa has acute needs. Second, a growing number of 

African counterpart institutions are showing a commitment to reform. The Program Highlights 

section of this report provides examples of such commitment. Third, results achieved by 

successful projects have inspired other governments in the region to seek a productive use of 

Treasury technical assistance. Fourth, few international donors in Africa focus on the design and 

operation of national financial institutions required for successful market-based economies. 

HIPC CONNECTION

In making TIATA budget allocations, Treasury gives strong consideration to engagements that 

would complement and support the Heavily Indebted Poor Countries (HIPC) debt-reduction 

initiative. A major facet of HIPC involves the World Bank’s granting of substantial debt 

forgiveness to highly-indebted poor countries that undertake significant reform of their economic 

and governance systems. Forgiving these debts represents a substantial investment in the future 

success of these countries by the U.S. Government and the other members of the international 

community. For this reason, it is appropriate that TIATA funding is utilized to support the efforts 

of HIPC countries in reforming their financial systems and improving their institutions of 

economic governance. 

TIATA funded assistance to nine African HIPC countries in Fiscal Year 2005 (up from seven in 

2004) – Chad, Ethiopia, Ghana, Guinea, Malawi, Niger, Tanzania, Uganda, and Zambia. In 

addition, Fiscal Year 2005 TIATA resources funded tax technical assistance to Honduras and 

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government debt management assistance to Bolivia, Honduras, and Nicaragua, which are HIPC 

countries in Central and South America. 

FISCAL YEAR 2005 ANTI-TERRORIST ACTIVITIES 

OTA advisors expanded international support in the areas of money laundering, terrorist 

financing, corruption, and other financial crimes. Resident Financial Enforcement advisors 

continued to provide assistance in the Eastern Caribbean, Paraguay, Peru, and the Philippines. In 

April, OTA began a program in Croatia to work on the organizational structure of that country’s 

Criminal Investigation Division (CID). This work involved assessing the requirements for, and 

development of, a computerized project for the case management and time-reporting systems. In 

2005, OTA placed a resident Financial Enforcement advisor in Albania with the High 

Inspectorate of Declaration and Audits of Assets to provide technical assistance on internal audit. 

A resident advisor also was placed in Senegal in February 2005 to work closely with the 

Senegalese Financial Intelligence Unit (FIU). In addition, OTA concluded plans to place a 

resident advisor in Afghanistan, who will focus on developing a semi-autonomous FIU within 

the Da Afghanistan Bank, Afghanistan’s central bank. 

OTA anticipates placing a resident advisor in Malawi in March 2006 to provide technical 

assistance in risk-based examination procedures to the Malawi Reserve Bank. OTA also will 

place a regional resident advisor in South Africa in March 2006 to assist with intermittent and 

resident advisors of both the African and Middle Eastern regions. Lastly, while continuing its 

intermittent assistance to the Government of Sri Lanka, OTA finalized plans to place a resident 

advisor in Colombo in spring of 2006. This advisor will assist in the development of effective 

anti-money laundering and countering the financing of terrorism, including establishment of a 

FIU that meets international standards. 

OTA resident advisors in the Caribbean focused on national efforts to fight financial crimes as 

well as on bank regulatory compliance. In addition, using global TIATA funds, OTA Financial 

Enforcement advisors provided intermittent assistance during 2005 to the governments of Belize, 

Bolivia, Botswana, Brazil, Burkina Faso, Chile, El Salvador, Ethiopia, Haiti, Honduras, 

Nicaragua, Paraguay, Peru, Zambia, and the Eastern Caribbean countries. 

Working either independently or within the context of the U.S. Government inter-agency 

process, OTA Financial Enforcement advisors conducted assessment missions in Afghanistan, 

Botswana, Brazil, Chile, Colombia, Honduras, Kyrgyzstan, Sao Tome and Principe, Lesotho, 

Malawi, and Nigeria. These missions led to largely positive determinations with respect to the 

feasibility of technical assistance engagements. Several countries requested long-term assistance 

to build their capacity to address money laundering, improve the regulation of banks and nonbank financial institutions, and create criminal tax divisions. 

OTA’s Financial Enforcement projects have the flexibility to draw expertise from the other four 

disciplines within OTA. Tax Policy and Administration advisors, along with Financial 

Enforcement advisors provided training and technical assistance to gaming industry regulators in 

several countries and laid the groundwork for providing training to regulators of Internet gaming. 

The aim was to aid in the implementation of measures that are useful for the identification, 

investigation, and prosecution of persons that commit crimes over the Internet. In addition, 

Banking and Financial Services works with Financial Enforcement in creating compliant 

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financial services regimes, and the Budget Policy and Management program works with 

Financial Enforcement in the areas of internal audit and procurement fraud. 

RECONSTRUCTION AND STABILIZATION INITIATIVES

OTA has become increasingly active in providing assistance to post-conflict countries, as well as 

failed states. It also appears that certain countries suffering from the results of severe natural 

disasters have restructuring and stabilization needs not unlike those of nations weakened by 

conflict or political instability. In these types of engagements, OTA has proved itself able to 

respond quickly with the placement of expert teams in challenging environments. 

Iraq and Afghanistan

During 2005, Treasury’s technical assistance efforts in Iraq were focused on the implementation 

of the Iraq Payments System. This electronic system is designed to facilitate funds transfers and 

reconciliation of accounts between banks throughout the country and the Central Bank of Iraq. 

The new system will replace a dangerous reliance on physical transfers of cash throughout Iraq. 

The two core components that form the foundation of the project are a real time gross settlement 

system and an automated clearinghouse for batch payments. In addition, a recently added third 

component involves establishment of an electronic government securities registration system. 

First stage acceptance tests have been completed. The two major Iraqi banks, the Rasheed and 

Rafidain banks, have successfully sent transactions to the contractor’s temporary test site in 

Dubai. 

At present, OTA is engaged in three functional areas in Afghanistan: banking, debt, and financial 

enforcement. OTA is supporting the Ministry of Finance through institutional strengthening and 

capacity building in the areas of bank restructuring, credit access, and payments systems, as well 

as the creation of non-bank financial institutions and markets (insurance, leasing, and mortgage 

finance). OTA also assists the Ministry through training for the Debt Management Unit, creating 

appropriate debt tracking mechanisms, developing policies and procedures for debt management, 

and assisting with the development of sound cash management practices and procedures. OTA 

is focusing its financial enforcement technical assistance on the development of a Financial 

Intelligence Unit (FIU) as a semi-autonomous unit within the Central Bank of Afghanistan. The 

FIU will function as a centralized repository of financial intelligence based on suspicious and 

cash transaction reports submitted by banks and other reporting entities. It will process and 

analyze all such reports and disseminate case files to prosecutor offices for further investigation 

and potential prosecution. 

Liberia

Treasury’s technical assistance to Liberia helps a country with a special historic relationship to 

the United States, and supports a U.S. foreign policy priority. OTA’s program in Liberia is an 

excellent example of a comprehensive, integrated approach to improving operational and 

financial management capacity within key governmental institutions. The overarching goal of 

this engagement is to improve the government’s ability to generate revenue via increased tax 

collection and rationalization of the tax system, to create a transparent and sound government 

budget that reflects a measured prioritization of expenditures, and to transform the banking 

sector into an efficient means of allocating financial resources into productive economic 

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activities. Due to the flexibility afforded by TIATA funding, OTA was a first responder to the 

post-conflict crisis in Liberia. It was able to place a team of advisors in Liberia earlier than other 

providers of economic sector assistance. Specific examples of achievements in Liberia are noted 

in the Program Highlights section below. 

Haiti

Treasury was also a first responder to the post-conflict situation in Haiti. Although security is 

still unstable and violence in the country has caused some delays, OTA’s work is continuing. 

Financial Enforcement is assisting efforts by the Government of Haiti to combat corruption and 

recover assets pilfered from that government’s treasury. OTA has assisted the Unite Centrale de 

Renseignements Financiers (Central Financial Information Directory) by providing training in 

the identification and gathering of evidence for use in prosecutions in Haiti and abroad, including 

a Racketeer Influenced Corrupt Organization (RICO) suit filed in U.S. District Court in Miami. 

In addition, Treasury’s Tax Policy and Administration program conducted a successful strategic 

planning session with the top leadership of the Director General des Impots of Haiti in 

November. A strategic plan was completed and submitted to the Minister of Finance for final 

approval and signature. 

 

CROSS-TEAM PROJECTS 

Beginning in 2004 and increasingly in 2005 OTA emphasized country projects that called for the 

application of skills found in more than one of OTA’s team disciplines. Financial Enforcement 

and Banking and Financial Services conducted a joint mission to the Dominican Republic and to 

Colombia that dealt with banking supervision and anti-money laundering. Financial Enforcement 

and Tax Policy and Administration conducted cooperative missions on gaming in Chile, Costa 

Rica, El Salvador, Honduras, and Nicaragua. These two teams also worked together in Paraguay 

on issues dealing with customs, the inspector general function, and tax. The Budget Policy and 

Management and Government Debt Issuance and Management teams jointly delivered cash 

management training in Afghanistan, Bosnia, Honduras, and Paraguay. They also joined with 

Tax Policy and Administration to present cash management training in Honduras. In Liberia, 

advisors from the budget, tax, and banking teams assisted the government in increased tax 

collections, rationalizing the tax system, creating a transparent budget, documenting existing 

debt, and improving regulation of the banking sector. 

COOPERATION WITH THE MILLENNIUM CHALLENGE CORPORATION

In 2005 OTA began a mutually beneficial relationship with the Millennium Challenge 

Corporation (MCC). OTA’s subject-matter expertise in financial management has been valuable 

to MCC for the analysis, evaluation, and monitoring of prospective and on-going projects. 

Through an interagency agreement, MCC has been able to move its efforts forward in seven 

countries by tapping the talents of advisors from OTA’s budget, banking, and debt teams. In 

2005, OTA assisted in setting up fiscal accountability mechanisms for MCC funds in Mongolia, 

Mozambique, Lesotho, and Cape Verde. OTA advisors participated on country transaction 

teams (working groups charged with implementing MCC compacts), and gave advice on the 

identification and procurement of fund managers. An evaluation of a proposed small enterprise 

credit facility was also provided by OTA. In Mozambique, an OTA advisor contributed to the 

initial design of, and due diligence on, a credit facility for the Compact. In Georgia, OTA 

introduced the concept, requirements, and structure for a development fund. The advisor then 

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provided guidance that resulted in the appointment of an advisory panel and board for the 

Georgia Regional Development Fund. In Malawi, OTA will field advisors in budget, tax, 

financial enforcement, government debt, and banking to support an extensive MCC Threshold 

Country Program for which USAID is exercising oversight and coordination. 

STRENGTHENING OTA PERFORMANCE MANAGEMENT 

Over the past year, OTA has taken a number of steps to strengthen its ability to track and manage 

its performance. Some of this effort has centered on sharpening, standardizing, and integrating 

program documents. The central documents used in the management of the OTA program are: 

(1) the Budget Request that is used to propose and justify funds for specific projects; (2) Terms 

of Reference, which constitute the agreement between Treasury and a host country; (3) the 

advisor Workplan, which lays out the specific plan for the project; and (4) the Monthly Report 

that is used to track Workplan progress for each project. In 2005, OTA revised all four of these 

documents so that they now have a standard and integrated relationship with each other and are 

applied to all OTA TIATA (as well as SEED and FSA) projects. In addition, every Workplan has 

verifiable measures associated with each objective, and each objective has milestones for 

completion. For example, the resident budget advisor in Paraguay has a workplan comprising 

nine objectives, each with one to nine milestones, to be completed (depending on the objective) 

between June and November 2006. The advisor’s monthly reports track each objective and 

milestone and provide comments on progress and other information bearing on the projected 

results. The Monthly Report, in addition to relevant narrative information about the project, 

updates the Workplan objectives and provides the opportunity to track progress and take 

management action where appropriate. In 2006, OTA will scrutinize and further refine its 

performance management tools. 

PROGRAM HIGHLIGHTS

Africa

Botswana:

3⁄4 OTA Tax Policy and Administration helped authorities reorganize the Botswana 

Unified Revenue Service (BURS), which combined responsibility for income tax, 

customs, and VAT administration into one agency. One effort focuses on developing 

benchmarks of performance for BURS to track progress. Technical assistance has 

included development of a strategic plan, creation of position descriptions for all 

BURS managers and technical employees, and management training for all top 

managers of BURS. Technical assistance has also been delivered to create a taxpayer 

service function that consolidates three previous service functions, deliver audit 

techniques training, and develop revenue estimation procedures. Changes to systems 

to implement this assistance are currently in progress. 

Ethiopia: 

3⁄4 OTA Tax Policy and Administration helped the Federal Inland Revenue Authority 

update its revenue databases, merge economic data into a macro-economic forecast, 

and build quarterly revenue models. Additional progress was made on tax forms 

redesign and taxpayer education. 

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Ghana: 

3⁄4 OTA Tax Policy and Administration assisted the Ministry of Finance in preparation 

for the 2006 merger of the tax and VAT functions into one organization. 

Development of audit and collection manuals and related procedures increased the 

number and quality of audits as well as revenue collection. A partnering agreement 

with the Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), the German 

national enterprise for delivering foreign aid assistance, resulted in the delivery of 

human resources training in November 2005 and will extend into 2006. 

Guinea

3⁄4 When the Minister of Finance made his 2005 budget presentation to the National 

Assembly, legislators publicly complimented him on the appearance of the 2005 

budget document, saying it was more readable than previous budget documents and 

was presented in a format that made it much easier to locate critical information. The 

Budget Director then publicly credited the resident OTA budget advisor with the 

changes to the physical layout and presentation of these budget documents. The 

format changes were followed in succeeding months by instruction on presenting new 

information to make the budget more comprehensible to policymakers and more 

transparent to the public. 

Liberia: 

3⁄4 OTA Budget Policy and Management stationed an advisor skilled in budget execution 

procedures in Monrovia, starting in March 2005. The advisor established procedures 

for reconciling budget allocations to expenditures in the national budget and 

succeeded in convincing the Finance Minister to demand more accurate information 

about expenditures from the Cash Management Committee. At the advisor’s urging, 

the Minister repeatedly resisted making payments for questionable expenditures. The 

team also began capacity building training for budget staff in the Ministry of Finance 

and the Budget Bureau.

3⁄4 OTA Tax Policy and Administration information technology advisors, financed 

through an agreement with USAID, installed and made operational a wireless radio 

link between the Ministry of Finance and the Central Bank. The system 

electronically controls all tax bills produced by the Ministry and cross checks 

payments with Central Bank software. The system is designed to reduce the potential 

for fraud, while also offering taxpayers a one-stop tax-preparation and payment 

operation. In 2006 the seaport and airport are to be linked to a connection with 

customs and tax. 

3⁄4 OTA Banking and Financial Services developed and implemented several regulations 

for the Central Bank. The resident advisor drafted a bank restructuring and resolution 

policy, with input from the IMF technical assistance team, which formed the basic 

guidance for a Distressed Banks Resolution Committee. The advisor also directed a 

series of in-house training workshops for the bank supervision staff and collaborated 

with the OTA tax team to develop an electronic link between the Central Bank and 

the Ministry of Finance to facilitate the collection of tax obligations. 

 Madagascar: 

3⁄4 OTA responded to an urgent 2005 request from the President of Madagascar for 

assistance in macroeconomic forecasting. A Budget Policy and Management 

intermittent advisor, with the help of the U.S. Embassy, established effective working 

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relationships with the President and the relevant assistant ministers (Directeurs 

General) of the Ministry of Finance and Economy. Lack of analytical capacity in the 

Ministry of Finance and Economy was a critical shortcoming in the public finance 

process, and this project met Madagascar's specific needs. The advisor initiated 

training in computer modeling for revenue estimation as part of the overall budget 

process. 

Malawi:

3⁄4 In June 2005 the OTA Tax Policy and Administration program started a project to 

assist in the modernization of the Malawi Revenue Authority. This led to a larger 

OTA agreement with USAID to deliver broader services to strengthen fiscal reform, 

funded under the MCC Threshold Plan. OTA has a resident advisor awaiting 

assignment as soon as MCC funds arrive. 

3⁄4 OTA Financial Enforcement is providing intermittent assistance to the AntiCorruption Bureau on mentoring forensic investigators. The team mentored several 

investigators and prosecutors on major tax evasion cases, which resulted in the first 

conviction for tax evasion in Malawi’s history. The team will soon be placing a 

resident advisor with the Reserve Bank to help establish an AML/CFT regime. 

Mauritius: 

3⁄4 OTA Budget Policy and Management continued to assist the country in the 

development and implementation of a Medium-Term Expenditure Framework. This 

was part of a three-year effort to make budget decisions more transparent and 

sustainable. Toward the end of 2005 the advisor also played a major role in the 

reorganization of public finance staff.

Nigeria:

3⁄4 OTA Government Debt Issuance and Management helped the Federal Government of 

Nigeria (FGN) extend the maturities of its debt from three-month treasury bills 

through competitive auctions. This resulted in the FGN being able to market sixmonth treasury bills, two-year FGN notes, and three-year FGN notes successfully. A 

calendar of regularly scheduled auctions to finance FGN debt has been established, 

and a framework has been established for the creation of a Primary Dealer Network to 

enhance primary distribution and secondary market trading of FGN debt. 

Sao Tome and Principe: 

3⁄4 OTA Financial Enforcement has instituted an intermittent program with the 

Prosecutor General to establish a unit to investigate financial crimes. The work 

underway will include the establishment of an AML/CFT regime. 

South Africa: 

3⁄4 The OTA Banking and Financial Services team continues to advise the National 

Treasury concerning its proposal to establish a deposit insurance system in the 

Republic of South Africa. This requires obtaining agreement between the Reserve 

Bank (central bank of South Africa) and the National Treasury on a joint proposal. 

The advisor completed a full revision of a policy paper for submission to the Minister 

of Finance, and a legislative review is scheduled for the first quarter of 2006. 

3⁄4 From 2002 through 2004, the South African budget was being exceeded, with the 

shortfall growing approximately 30% each year while budgeted increases were only 

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10% per year. This reduced the availability of funding for vital initiatives in such 

fields as education and health. Simultaneously, there was no reliable information on 

the causes of these dramatic shortfalls. The OTA resident budget advisor worked 

closely with national and provincial program administrators to develop a multifaceted set of policies to control spending. At the same time the advisor worked with 

National Treasury officials to secure mid-year funding for a management data 

information system so expenditures and key data could be monitored and future 

budget crises averted. The growth rate of expenditures for 2005 was reduced 

significantly, to 8%, which was consistent with the level budgeted by the National 

Treasury. 

Uganda: 

3⁄4 OTA Banking and Financial Services technical assistance resulted in total investment 

of the Deposit Protection Fund (DPF). According to prior practice, funds were held 

in a non-interest bearing account. The transition to a more productive monetary 

policy resulted in an increase in income for the DPF. The resident advisor also 

compiled bank receivership manuals and delivered training on their use. As a result 

of this continuing education process, the payment of dividends from Ugandan 

receiverships to the DPF and general creditors has been initiated.

3⁄4 OTA Government Debt Issuance and Management established a Primary Dealer 

Ranking System that gives the Central Bank of Uganda quantitative means for 

assessing the performance of primary dealers. The team also contributed to Uganda 

receiving its initial sovereign debt rating from Fitch Ratings Services; helped 

organize the first buyback of Government of Uganda debt to manage rollover risk; 

and wrote investment guidelines for the National Social Security Fund, the only 

source of long term capital in Uganda. 

3⁄4 Together with OTA Banking and Financial Services, the OTA Government Debt 

Issuance and Management resident advisor arranged for the Deposit Protection Fund 

held at the Central Bank of Uganda to be transferred to an outside professional 

investment advisor. This now represents the most important source of competition 

for the commercial banks in the government debt market. 

3⁄4 While the Debt team and the Banking team were having significant successes in 

Uganda, the Financial Enforcement team faced obstacles. After two years of technical 

assistance, the Government of Uganda failed to pass anti-money laundering 

legislation that was critical to the success of the Enforcement project. OTA 

interpreted this failure as evidence of a lack of political will, so the project was 

suspended and the advisor withdrawn. Were the GOU to demonstrate renewed 

political will to pursue anti-money laundering legislation, OTA would weigh the 

merits of a re-engagement by its Financial Enforcement team. 

 Zambia: 

3⁄4 Pursuant to technical assistance objectives for the Bank of Zambia (the central bank 

of Zambia), OTA Banking and Financial Services developed guidelines for the 

implementation of international financial reporting standards and drafted a banking 

circular. The resident advisor prepared guidelines for implementation of the Basel II 

regulatory capital framework of the Basel Committee, which promotes banking 

supervision cooperation and is sponsored by the Bank for International Settlements. 

The advisor also developed regulations covering the operations of money transfer 

agencies. Lastly, the Banking and Financial Services team proposed amendments to 

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the Banking and Financial Services Act and the Bank of Zambia Act, both of which 

were submitted to the Ministry of Justice. The Banking and Financial Services Act 

was passed in October, 2005; the Bank of Zambia Act is pending. 

 West Africa: 

3⁄4 As part of its West Africa regional initiative, OTA Government Debt Issuance and 

Management assisted the Government of Benin with its first treasury bill issuance of 

23.35 billion CFA francs (approximately $43.1 million). This represents an important 

step forward and evidences a focus on building the country’s technical capacity. 

3⁄4 The OTA Government Debt Issuance and Management advisor organized six 

government securities seminars in collaboration with the Banque centrale des états de 

l'afrique de l'ouest (Central Bank of the West African States) in 2005. Participation 

included 180 representatives from banks, the Bourse régionale des valeurs mobilières 

(capital underwriter for West African states), the Conseil régional (insurance 

companies), and Societes generales d’investissement (financial intermediaries), as 

well as officials from five Ministries of Finance throughout francophone West Africa. 

Asia and Near East

 Afghanistan

3⁄4 OTA Banking and Financial Services aided in developing a financial sector policy for 

the Ministry of Finance. This policy was designed to help develop a competitive, 

efficient, market-oriented, and privately-owned financial sector that provides 

innovative financial products and services to Afghanistan’s households, enterprises, 

and government entities. When fully implemented, the policy will increase the level 

of formal financial intermediation in Afghanistan’s economy, as well as support and 

sustain overall economic development and poverty reduction. 

3⁄4 OTA Government Debt Issuance and Management provided technical assistance for 

three months to the cash management unit in the Ministry of Finance. 

Accomplishments included streamlining and documenting key cash procedures, 

conducting a three-day seminar for 48 government officials on effective cash 

management, and installing OTA’s cash management database. 

3⁄4 In preparation for the January 2006 deployment of its resident advisor to Afghanistan, 

Financial Enforcement conducted a mission in December 2005 that defined 

requirements for establishing a new Financial Intelligence Unit (FIU). The focus of 

the mission, conducted jointly with Treasury’s Office of Terrorism and Financial 

Intelligence, was to specify organizational and staffing requirements for the new FIU. 

Jordan

3⁄4 OTA Government Debt Issuance and Management assisted the Ministry of Finance 

(MoF) in preparing its first ever annual debt issuance calendar; improving 

communication between the MoF and Central Bank of Jordan to ensure sufficient 

market liquidity for Ministry debt issues; and completing a comprehensive review 

and recommendation for amending the Kingdom of Jordan’s debt law. 

 Palestine/West Bank:

3⁄4 A third, multi-team country assessment of Palestine/West Bank was completed in 

2005. Terms of Reference were drawn up by the Budget, Debt, and Tax teams, and 

advisors were selected and prepared to begin projects in early 2006. The Palestinian 

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government, however, asked for the deployments to be delayed while it awaited the 

results of the January 2006 national elections. OTA, in consultation with State and 

other USG entities, will judge whether providing technical assistance to 

Palestine/West Bank at some point in the future remains in the best interest of U.S. 

foreign policy. 

Philippines: 

3⁄4 OTA Financial Enforcement has a resident advisor working with the Anti-Money 

Laundering Council (the Philippine Financial Intelligence Unit) to enhance its 

investigative management system and to build capacity in law enforcement 

concerning the basics of financial investigations. The team also has a resident advisor 

with the Asian Development Bank to provide guidance and technical support to the 

financial and governance sector so that the Bank can better support AML/CFT efforts 

among its borrowing countries. 

Sri Lanka: 

3⁄4 OTA Government Debt Issuance and Management assisted the Government of Sri 

Lanka in developing a comprehensive debt strategy blueprint to assist with 

implementing its debt policy. The team also advised counterparts on the development 

of index-linked products, debt reprofiling, and introduction of short-selling by 

primary dealers to enhance the development of the domestic government debt market. 

3⁄4 OTA's Budget Policy and Management team reconfigured its technical 

assistance to develop a long-term capacity-building program that is tailored to local 

realities and promotes exposure to experienced practitioners. By the end of 2005 this 

OTA-supported program became central to the Ministry of Finance and Planning 

Human Resources Development Plan, which will generate long term benefits for Sri 

Lanka's budget and financial management. 

 Thailand:

3⁄4 In 2005 OTA joined with its law enforcement partners from the Departments of 

Justice, State, and Homeland Security in withdrawing technical assistance from the 

Anti-Money Laundering Office (AMLO) of the Government of Thailand. The Thai 

financial intelligence unit had instituted a practice among its enforcement personnel 

under which individuals were rewarded with a percentage of recovered funds from 

cases prosecuted. This practice encouraged agents to pursue those cases with the 

highest potential financial benefit, without regard for the merit or significance of 

other, less financially promising targets. USG law enforcement personnel concluded 

that such a practice undermined the purpose and principles of responsible financial 

intelligence unit work. 

Turkey: 

3⁄4 OTA Tax Policy and Administration provided ongoing assistance to the General 

Directorate of Revenue (GDR) as it continued its functional reorganization. Of the ten 

projects identified in the 2004 GDR tactical plan, five were completed in 2005. These 

included the creation of a Change Management Board (a selected group of GDR 

executives whose role is to oversee changes), completion of a law on reorganization 

of the tax administration system, study of the local office structure, and establishment 

of a taxpayer service function and human resources plan. Of the remaining projects, 

three are underway and two will be started in mid-2006. 

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3⁄4 OTA Banking and Financial Services aided the Savings Deposit Insurance Fund 

(SDIF), which serves as the country’s asset management unit, in completing its first 

large sale of bank assets. Under a revenue-sharing arrangement, entirely novel for 

Turkey, the SDIF accepted a U.S. investment bank’s bid to pay $161 million for 

assets being auctioned. This arrangement resulted in a projected gross cash flow of 

$355 million (including revenue sharing) for the SDIF. Furthermore, as the result of 

a change in Turkey’s banking law, the SDIF was given substantially expanded riskmanagement powers. With the help of OTA, the SDIF organized a new risk 

management department. 

 Yemen

3⁄4 As part of a Broader Middle East and North Africa (BMENA) regional initiative, 

funded in part through the Department of State Middle East Partnership Initiative, the 

OTA Banking and Financial Services regional advisor provided technical assistance 

with respect to the closure of Watani Bank by the Central Bank of Yemen (CBY). 

The advisor also provided the CBY Supervision Department with standard closing 

and liquidation manuals and is in the process of preparing manuals written 

specifically for use in Yemen. In the future, this will enable the CBY to conduct bank 

closings and liquidations consistent with Yemeni laws. 

3⁄4 Also as part of the BMENA regional initiative, the OTA Government Debt Issuance 

and Management regional advisor helped rewrite a crucial public debt law that has 

since been adopted by the Cabinet and is now under consideration by the Parliament. 

Latin America and the Caribbean

Antigua: 

3⁄4 In 2005 the OTA Financial Enforcement and Tax Policy and Administration teams 

conducted an assessment of Antigua and Barbuda’s casino gaming oversight and antimoney laundering program. Financial Enforcement also worked with the Financial 

Services Regulatory Commission that regulates the insurance sector and the Office of 

National Drug and Money Laundering Control Policy (ONDCP). Advisors delivered 

an anti-money laundering, counter-terrorist financing awareness seminar for the 

insurance sector and also provided mentoring for ONDCP financial intelligence unit 

investigators and managers. 

Bolivia: 

3⁄4 OTA Financial Enforcement conducted a comprehensive needs assessment in Bolivia 

and formulated a recommendation for training and technical assistance. As a first step 

in its program for Bolivia, the team provided a detailed analysis and study comparing 

draft anti-money laundering and counter financing of terrorism legislation to model 

legislation of the Organization of American States, as well as to existing laws of 

neighboring countries that are deemed compliant with internationally accepted norms. 

In addition, advisors mentored Bolivian prosecutors in the development and 

presentation of evidence for money laundering cases. 

Chile: 

3⁄4 OTA Financial Enforcement and Tax Policy and Administration advisors conducted a 

joint assessment of Chile’s newly-created casino gaming oversight and anti-money 

laundering program. Following this assessment, OTA Enforcement advisors mentored 

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Chilean officials on the development of a program for vetting casino license 

applicants. OTA Enforcement advisors also conducted a comprehensive assessment 

of Chile’s anti-money laundering laws and programs. As a result, they developed a 

training and technical assistance program to enhance the effective application of those 

laws and programs. 

Costa Rica:

3⁄4 Since April 2005 OTA Tax Policy and Administration has provided ongoing 

assistance to the Ministry of Hacienda and Direccion General de Tributacion (DGT). 

Assistance is focused on implementing recommendations for improving the taxpayer 

appeals process. The project also focuses on enhancing returns processing, improving 

the planning and management process, and augmenting audit activities. A major anticorruption accomplishment of this technical assistance project has been the 

acceptance of a recommendation to establish a Ministry-wide internal affairs program 

to eliminate corrupt relationships between taxpayers and DGT officials. 

 Dominican Republic:

3⁄4 OTA Tax Policy and Tax Administration initiated a technical assistance project for 

the Dirreccion General de Impuestos Internos (DGII) in July 2005 that focuses on 

audit and internal controls. Specialized auditing manuals and procedures are being 

adapted to DGII needs for audits of the retail sales industry, banks, insurance 

companies, and casino operations. Emphasis is also being placed on anti-corruption 

measures within the DGII. 

El Salvador: 

3⁄4 OTA Financial Enforcement and Tax Policy and Administration teams jointly 

evaluated El Salvador’s casino gaming oversight and anti-money laundering program 

and formulated a work plan. Implementation is planned for 2006. 

3⁄4 Financial Enforcement, working with judicial and prosecutorial authorities, provided 

training in the application of anti-money laundering and counter financing of 

terrorism laws and programs. The team also worked with the financial intelligence 

unit in the development, acquisition, and implementation of a data processing and 

management system. 

Guatemala: 

3⁄4 In April 2005 Tax Policy and Tax Administration developed an extractive industries 

project with the Superintendencia de Administracion Tributaria (SAT) that is 

scheduled to begin in 2006. The focus will be on capacity building for taxation of the 

distribution and sale of petroleum products, training on specialized production 

sharing agreements, and providing assistance for SAT’s audit of the mining industry. 

 Haiti: 

3⁄4 OTA Tax Policy and Administration began what could become a multi-year project 

with the Haitian Direction General des Impots (DGI). Initial assistance included a 

strategic planning workshop for the Director General and the DGI leadership team in 

December 2005. Full implementation of the project, however, will not begin until 

after the general elections and the emergence of a secure working environment. 

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Honduras: 

3⁄4 OTA Tax Policy and Administration provided ongoing technical assistance to the 

Ministry of Finance and the Dirección Ejecutiva de Ingresos (DEI – the Honduran 

equivalent of the IRS). The primary focus continues to be tax collection and audit. 

Following the completion and signing of the Code of Ethics by the President of 

Honduras, assistance in the establishment of internal controls was initiated. The DEI 

of Honduras took a Latin American regional leadership role among tax 

administrations by hosting three OTA-designed training courses. Subject matter 

included transfer pricing law and regulations, basic instructor training, and audit 

techniques. Three more regional courses are scheduled for 2006. 

3⁄4 OTA Government Debt Issuance and Management provided technical assistance to: 

(1) revise the rules and regulations of the Central Bank of Honduras to foster 

development of the interbank market; (2) reorganize back-office operations of the 

Central Bank to eliminate potential conflicts of interest; and (3) conduct a cash 

management seminar at the Ministry of Finance. The seminar was attended by 40 

participants. 

Nicaragua: 

3⁄4 OTA Tax Policy and Administration provided ongoing assistance to the Dirección 

General de Ingresos (DGI – the Nicaraguan tax administration). A primary focus of 

this assistance was the expansion of DGI information technology capacity, which was 

in conjunction with an Inter-American Development Bank program. This has resulted 

in dramatically improved utilization of automated information systems for data 

collection. As a result, there has been notable improvement in enforced collection 

through case prioritization. Tax revenues were up 39% over 2004 revenues. 

Paraguay: 

3⁄4 OTA Enforcement Advisors trained financial intelligence unit analysts and worked 

with Paraguayan authorities in the negotiation and implementation of memoranda of 

understanding on information exchanges among prosecutors, police authorities, and 

foreign counterparts, including FinCEN. 

3⁄4 In 2005 Budget Policy and Management helped Paraguay take a major step forward 

in its effort to promote greater budgeting transparency. With the help of OTA's 

resident budget advisor, the Ministry of Finance issued a Budget in Brief that 

summarized budget plans in a more understandable way and enhanced accessibility 

by the general public. This action not only sets a positive precedent for government 

communication with the citizenry, but also encourages responsible decision making 

by government managers. It also promotes accountability for public funds. 

3⁄4 OTA Tax Policy and Administration provided ongoing assistance to the Ministry of 

Finance and the Sub Secretaria de Estado de Tributacion (SSET – the tax department 

at the Ministry of Finance). Tax assistance continues to focus on the need to reduce 

tax evasion – estimated to exceed 50% – by strengthening the tax audit program, 

establishing SSET internal controls to reduce opportunities for corruption, and 

eliminating cash transactions between SSET personnel and taxpaying public. 

3⁄4 Government Debt Issuance and Management assisted in the drafting of a debt 

financing law which, for the first time since the 1992 Constitution was adopted, will 

provide a framework for debt issuance. The draft law is making its way to the 

Paraguayan parliament. In addition, the team hosted an investment course on reserve 

management that was attended by twenty central bank professionals; assisted in the 

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first upgrade of the public debt database in over five years; and assisted the National 

Bank of Paraguay in designing an economic reporting system as a first step towards 

strengthening monetary policy. 

Peru: 

3⁄4 OTA Financial Enforcement helped the Comptroller General of Peru establish an 

internal investigations/integrity unit for the prosecution of corruption. Advisors 

provided mentoring on the employee selection and vetting process and provided 

follow-on investigative training. The team also worked with Peruvian customs 

authorities to improve anti-money laundering and counter financing of terrorism 

procedures at airports. 

 

 Regional: 

3⁄4 In September 2005 OTA Financial Enforcement presented a financial investigations 

techniques course at the Caribbean Regional Drug Law Enforcement Training Center. 

This training was provided to investigators from Brazil and thirteen Caribbean 

jurisdictions. 

3⁄4 OTA Financial Enforcement engaged the Central American Council of Bank 

Supervisors in a joint initiative for a regional seminar on the regulation and 

examination of money-service businesses, including money remitters and currency 

exchange dealers. 

Eurasia

 Bosnia:

3⁄4 OTA Government Debt Issuance and Management helped draft the Frozen Foreign 

Currency Law that is now before Parliament. The law will allow for the orderly 

settlement of the huge outstanding debt owed to the citizens. The team also helped 

draft and secure adoption of the State Debt Law which harmonized debt issuance 

procedures for all levels of government and created a legal framework for all debt, 

both external and domestic. 

 Georgia:

3⁄4 OTA Government Debt Issuance Management assisted Georgia in obtaining its firstever sovereign credit rating. Standard & Poor’s assigned a B/B+ rating to Georgia in 

December 2005. 

 

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