ITALY: STATUS OF FROZEN IRAQI ASSETS

UNCLAS ROME 000385

SIPDIS


SENSITIVE

DEPT FOR EB - SALOOM AND EUR/WE - JOHNSON
TREASURY FOR ZARATE AND MURDEN
HQ COALITION PROVISIONAL AUTHORITY FOR VARDAMAN

E.O. 12958: N/A
TAGS: ETTC IZ IT IRAQI FREEDOM
SUBJECT: ITALY: STATUS OF FROZEN IRAQI ASSETS

REF: A. SECSTATE 19363

B. ROME 00227

C. 03 SECSTATE 346682

D. 03 ROME 5559

E. 03 ROME 5542


1. (SBU) Finance Ministry officials provided Embassy with
updated list of Iraqi assets frozen and held in Italy. This
list was reviewed and approved by the inter-ministerial
Financial Security Committee at its January 29 meeting.


2. (SBU) Information is presented below as follows: bank in
Italy holding funds, Iraqi entity to which assets belong,
value of account, status of transfer, and comments when
appropriate. Banks amended with an asterisk also appear on
the U.S. lists of Iraqi assets in Italy provided to the GOI
(ref a and c). The Ufficio Italiano dei Cambi (UIC),Italy's
Financial Intelligence Unit, is responsible for all
communications with banks regarding frozen assets.

Deutsche Bank* - Central Bank of Iraq accounts frozen, value
of USD 36,463,362.80. Status: Funds not transferred;
confirmation of account provided to Ufficio Italiano dei
Cambi. Deutsche Bank coordinating action with corporate
headquarters.

Banca Commerciale Italiana* - Rasheed Bank, value of account
negative, number of account, 912732/13/63. Account closed on
February 2, 2003, prior to passage of UNSCR resolutions
requiring transfer of amounts to the Development Fund for
Iraq.

Banca Commerciale Italiana* - N/A, number of account
962054/02/72, negative balance of Euros 584.63.

Banca Commerciale Italiana* - Rasheed Bank, number
912732/02/152, Euros 45,802. The court of the region of
Monza issued a custodial sequestration order on June 6, 1998.
No other action taken. Funds not transferred; no response by
bank to recent UIC communication.

Banca Commerciale Italiana* - Rasheed Bank, number
912737/10/69, Euros 82,405. Funds not transferred; no
response by bank to recent UIC communication.

Banca di Roma* - Rasheed Bank, number 1776678. Value of
account not provided. Funds not transferred. UIC is in
communication with bank officials.

Banca Nazionale Lavoro* - Rasheed Bank, number 9800/256147,
Euros 5,031.20. Bank is in communication with the UIC.

Banca Nazionale Lavoro - Rafidain Bank, Euros 22,650.64.
Funds not transferred. UIC is in communication with bank
officials.

*UBAE Arab Italian Bank - Rasheed Bank, Euros 8,823,996.37
and USD 7,145,400.97. Funds not transferred. Bank claims
need to coordinate response with headquarters in Paris.

*UBAE Arab Italian Bank - Central Bank of Iraq, Euros
7,380,244.14 and USD 4,367,729.3. Funds not transferred.
Bank claims need to coordinate response with headquarters in
Paris.

*UBAE Arab Italian Bank - Rafidain Bank, (Czech) CHF 621,30
and Euros 15,056.34. UBAE claims to hold Iraqi credits of
USD 6,438,713.61. Funds not transferred. Bank claims need
to coordinate response with headquarters in Paris.

Banca Monte Paschi di Siena - Central Bank of Iraq, USD
29,603,551.61. Funds not transferred. GOI in active
discussion with bank officials. Comment: Finance Ministry
officials optimistic that "moral suasion" will soon convince
bank officials to transfer some, if not, all of funds. End
Comment.

Credito Emiliano - Gawad Asim, Euros 175.44. Of this amount,
USD equivalent of 46.24 was unfrozen and transferred to the
Development Fund for Iraq.

Arab Bank Corporation - Rasheed Bank, USD 1,223,368.88.

Transfer to Development Fund for Iraq completed.

Unicredito Italiano SpA - Central Bank of Iraq, USD
970,852.22. Transfer to Development Fund for Iraq completed.

Unicredito Italiano SpA - Rafidain Bank, Euros 2,234.93 and
USD 662.34. Transfer to Development Fund for Iraq completed.

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2004ROME00385 - Classification: UNCLASSIFIED