PROPOSED VISIT TO JORDAN BY TREASURY AUDITING TEAM

S E C R E T AMMAN 001914

SIPDIS

E.O. 12958: DECL: 04/01/2008
TAGS: EFIN
SUBJECT: PROPOSED VISIT TO JORDAN BY TREASURY AUDITING TEAM

Classified By: Ambassador Edward W. Gnehm. Reasons 1.5 (b),(d).


1. (C) Post learned by email from NEA that Treasury Under
Secretary Taylor contacted Jordanian Finance Minister Michel

SIPDIS
Marto and Central Bank of Jordan (CBJ) Governor Umayya Toukan
regarding Treasury's interest in sending a small auditing
team to Amman to learn more about the activities and
functioning of the Amman branch of Iraq's Rafidain Bank. We
understand from a subsequent email that Treasury believed
that U/S Taylor had secured Jordanian concurrence for such a
visit.


2. (C) Regrettably, our interlocutors are unable to confirm
an agreement to receive a Treasury team. Finance Minister
Marto told the Ambassador March 27 that while he had no
objection personally, he had referred U/S Taylor to Governor
Toukan as the appropriate authority. Deputy Governor
Muhammad Said Shahin told ECON/C March 31 that the Governor
did not recall having approved a visit by such a team. After
consulting again with the Governor, Shahin confirmed that
Toukan believes he told U/S Taylor that such a request would
have to be made through formal diplomatic channels so as to
secure the agreement of the government as a whole. The
Governor had, Shahin said, told U/S Taylor that he would be
willing to review a Treasury questionnaire regarding
Rafidain's local activities, which should also be submitted
through diplomatic channels.


3. (S) Shahin noted that the Rafidain branch was subject to
Jordanian laws and to the same CBJ supervision as any other
bank in Jordan. He reiterated that the CBJ continues at his
and the Governor's level to monitor individual transactions
involving Iraqi accounts in Jordanian banks (including at
Rafidain) and to block any transaction believed to involve
the Iraqi government or its fronts. This is done in
coordination with other GOJ agencies, including the
intelligence services. Shahin added that he had been
surprised at the relatively small number of requests for such
transactions.


4. (C) Comment: Shahin made clear that the CBJ was ready
to cooperate with Treasury provided it had political
authorization. The Bank would also want to examine the
domestic legal ramifications and to set parameters for a
team's mission. Shahin said that PM Abul Ragheb was aware of
Treasury's interest. Post would be happy to support a
Treasury visit and to facilitate a formal request for
Jordanian government approval if instructed to do by
Washington and would be prepared to request M authorization
for the visit under standing guidelines for authorized
departure. Such an instruction from Washington should
contain a specific description of a team's proposed mission
and objectives. We also note that the security threat in
Amman remains very high. In addition, the subject the team
would be looking into is highly sensitive, as Shahin pointed
out. For these reasons, and if accepted by the Jordanians, a
team would need to keep an extremely low profile, working out
of the Embassy building with the support and involvement of
Economic Section staff.
GNEHM