IRAQI ASSETS: CROATIA PLANS TO TRANSFER FROZEN

UNCLAS ZAGREB 002408

SIPDIS


SENSITIVE

STATE FOR EB/ES/TSP, IO/PHO AND L/EB
TREASURY FOR ZARATE AND WALLWORTH

E.O. 12958: N/A
TAGS: EFIN PREL IZ HR
SUBJECT: IRAQI ASSETS: CROATIA PLANS TO TRANSFER FROZEN
ASSETS TO DEVELOPMENT FUND FOR IRAQ

REF: A. STATE 291321

B. STATE 196163

SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.


1. (U) IN RESPONSE TO REFTEL A, THE MFA AND THE MINISTRY OF
FINANCE'S FINANCIAL INTELLIGENCE UNIT REPORTED THAT THE
REFERENCED BANK ACCOUNT AT PRIVREDNA BANK HAD BEEN LOCATED.
THE ACCOUNT, UNDER THE NAME OF THE CENTRAL BANK OF IRAQ, HAS
APPARENTLY BEEN FROZEN SINCE 1991 UNDER UNSCR 661. IN
RESPONSE TO OUR REQUEST AND UNSCR 1483, THE GOC IS REQUESTING
THAT A JUDGE ORDER PRIVREDNA BANKA TO TRANSFER THE MONEY TO
THE DEVELOPMENT FUND FOR IRAQ. THIS SHOULD OCCUR NEXT WEEK,
AND OUR CONTACTS DO NOT ANTICIPATE ANY PROBLEMS.


2. (SBU) WHILE WE WELCOMED THIS NEWS, WE QUESTIONED WHY THE
ACCOUNT HAD NOT BEEN IDENTIFIED DURING THE INITIAL SEARCH FOR
IRAQI ASSETS, REFTEL B. OUR FIU CONTACT WAS UNSURE, BUT SAID
THAT THE ACCOUNT HAD BEEN TRANSFERRED INTERNALLY AND PLACED
IN A SPECIAL STATUS BY THE BANK AFTER ITS 1991 SEIZING, AND
MAY THEREFORE HAVE BEEN MISSED.


3. (SBU) POST NOTES THAT UNSCR 1463, PARA 23 (A) ONLY MAKES
A GENERAL REFERENCE TO GOVERNMENT OF IRAQ ENTITIES, WHILE
PARA 23 (B) LISTS SPECIFIC INDIVIDUALS. ACCORDING TO THE
UNSC PRESS RELEASE DATED JULY 2, "(A) LIST OF ENTITIES TO BE
IDENTIFIED PURSUANT TO PARAGRAPHS 19 AND 23 OF SECURITY
COUNCIL RESOLUTION 1483 (2003) WILL BE ISSUED AT A LATER
STAGE, AND WILL BE INCLUDED TOGETHER WITH THE LIST OF
INDIVIDUALS IN A CONSOLIDATED LIST OF THE COMMITTEE." IT
APPEARS THAT THIS LIST OF IRAQI STATE ENTITIES WAS NEVER
POSTED. WHILE THE CENTRAL BANK OF IRAQ OBVIOUSLY QUALIFIES
AS A STATE ENTITY UNDER UNSCR 1483'S PARA 23 (A),OTHER
ENTITIES MAY NOT BE AS OBVIOUS. THE VARIOUS BANKS IN CROATIA
MAY ALSO HAVE CONCENTRATED ON THE LIST OF NAMES PROVIDED BY
THE GOC FOR SEIZURE, RATHER THAN THE VAGUELY WORDED REFERENCE
TO IRAQI STATE ENTITIES. TO ENSURE THAT ALL IRAQI ASSETS ARE
IDENTIFIED, IT WOULD BE USEFUL IF A LIST, EVEN PARTIAL, OF
STATE ENTITIES, WERE ISSUED BY THE UNSCR COMMITTEE. WE WOULD
THEN ASK THE GOC TO CONDUCT A SECOND, MORE THOROUGH, SEARCH.
FRANK

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