IRAQ ASSETS: DUTCH KEEPING REFERENCED ACCOUNTS

UNCLAS THE HAGUE 002674

SIPDIS

SENSITIVE

STATE FOR EB/ESC/TSP, IO/PHO, L/EB

TREASURY FOR ZARATE AND WALLWORTH

E.O. 12958 N/A
TAGS: ETTC EFIN PREL NL IZ
SUBJECT: IRAQ ASSETS: DUTCH KEEPING REFERENCED ACCOUNTS
FROZEN

REF: A) STATE 291321 B) The Hague 1900


1. (SBU) The Dutch Ministry of Finance has confirmed that
the Netherlands-located accounts cited in ref a are located
here and been frozen by the GONL. The accounts total about
22,000 EURO. The GONL is unable (ref b) to immediately
transfer these funds to the Development Fund for Iraq as it
currently lacks the domestic legal authority to confiscate
them. MinFin has confirmed that it is seeking new
legislation that would enable the confiscation of frozen
Iraqi funds and that it will transfer these frozen funds to
the DFI once the legislation is in place. We note that
passage of legislation in the Netherlands is a lengthy
process and is likely to take several months.


2. (SBU) The Ministry of Foreign Affairs, however, has noted
to us reports that the Rafidain Bank is being revived by the
CPA under new management. If this is so, MFA asserts, the
funds might be transferred to the DFI upon written request
written request from Rafidain management to do so.

Sobel