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