IRAQI ASSETS: DUTCH IMPLEMENTATION OF UNSCR 1483

C O N F I D E N T I A L THE HAGUE 001957

SIPDIS

NOFORN

TREASURY FOR ZARATE
BRUSSELS ALSO FOR LEGATT

E.O. 12958: DECL: 08/03/2008
TAGS: ETTC IZ NL EUN
SUBJECT: IRAQI ASSETS: DUTCH IMPLEMENTATION OF UNSCR 1483

REF: A. BRUSSELS 3812


B. STATE 211439

C. THE HAGUE 1900

Classified By: Acting Economic Counselor Todd Kushner. Reason 1.5(b) a
nd (d)


1. (C/NF) The Netherlands central bank has tasked Dutch
financial institutions to search their records for any
accounts linked to the former Iraqi regime and to immediately
freeze any that are discovered regardless of whether they are
on a UN list. Dutch officials admit that the EU regulation
implementing UNSCR 1483 provides a legal basis only for
freezing assets listed by the UN. However, they have decided
to implement a more extensive blocking regime and plan to
unfreeze assets only if ordered to by a Dutch court.


2. (SBU) Nevertheless, the Dutch would like to see as
extensive a UN listing process as possible to provide not
only legal cover but improved identifiers. They are
struggling to develop standards for asset freezing. Must
they freeze accounts of firms where a company owned by the
former Iraqi regime is a minority shareholder? The accounts
of a firm where a former Iraqi official is one member of an
extensive board of directors? The Dutch have asked for
specific information on how U.S. financial institutions are
implementing UNSCR 1483.


3. (SBU) Clarifying ref c, the Dutch indicate that the EU
regulation implementing UNSCR 1483 addresses freezing and
transfer of Iraqi assets but does not address confiscation.
Confiscation was left out of the regulation after legal
experts asserted that confiscation is not an area of
community competence. Thus it is up to each member state
individually to implement UNSCR 1483's confiscation
requirements. The Dutch will require new legislation to do
so.
RUSSEL