Abstract. We report the results of an XMM-Newton observation of the persistent X-ray source 1E 1743.1-2843, located in the Galactic Center (GC) direction. We determine the position of the source at α J2000 = 17 h 46 m 21.0 s , δ J2000 = −28 • 43 44 (with an uncertainty of 1.5 ), which is the most accurate to date, and will enable cross-identifications at other wavelengths. The source was bright during this observation (L 2−10 keV ∼ 2.7 × 10 36 d 2 10 kpc erg s −1 for a power-law continuum), with no significant variability. We propose that 1E 1743.1-2843 may be explained in terms of a black hole candidate in a low/hard state. There is an indication that the source exhibits different states from a comparison of our results with previous observations (e.g., ART-P, BeppoSAX). However, the present spectral analysis does not rule out the hypothesis of a neutron star low-mass X-ray binary as suggested previously. If 1E 1743.1-2843 is actually located in the GC region, we might expect to observe significant 6.4 keV fluorescent iron line emission from nearby molecular clouds (e.g., GCM+0.25+0.01).