TANCHON COMMERCIAL BANK DEMARCHE RESPONSE:

S E C R E T HARARE 001365 SIPDIS SECRET NOFORN SIPDIS SIPDIS AF/S FOR S. HILL NSC FOR SENIOR AFRICA DIRECTOR B. PITTMAN USAID FOR M. COPSON AND E. LOKEN E.O. 12958: DECL: 10/17/2011 TAGS: EFIN KN KNNP PARM PGOV PREL ZI SUBJECT: TANCHON COMMERCIAL BANK DEMARCHE RESPONSE: ZIMBABWEAN BANK REJECTED ACCOUNT APPLICATION REF: STATE 185514 Classified By: Ambassador Christopher Dell under Section 1.4 b/d ¶1. (S) Reserve Bank of Zimbabwe (RBZ) Governor Gono conveyed to the Ambassador in a letter dated November 14 the outcome of the RBZ's investigation into the alleged request from North Korea's Tanchon Commercial Bank to open an account in Zimbabwe (reftel). RBZ Senior Division Chief ) Financial Intelligence Inspectorate Evaluation and Security ) Chiremba reported to Gono on November 13 that Tanchon Commercial Bank had indeed taken steps to open an account with Merchant Bank of Central Africa (MBCA) in September 2006. After vetting the request under its "Know Your Customer" due diligence policies and procedures, MBCA turned down the application in a formal reply on November 1, 2006. Particularly striking was the apparent weight MBCA attributed to Tanchon's failure to be certified under the U.S. Patriot Act. ¶2. (S/NF) Gono provided Chiremba's detailed report to the Ambassador as well as a copy of MBCA's correspondence with Tanchon Commercial Bank, which post has sent to Washington through SIMO channels. -------------- Comment -------------- ¶3. (S) The GOZ has had a good track record of cooperation with us on counter-terrorism and counter-proliferation issues and MBCA's action in this instance is not altogether surprising. That said, it is nonetheless a relief to know that despite the GOZ's professed "Look East" policy and its desperate search for friends and credits, there has been no back-sliding on these issues. In that regard, the material Gono provided, including Tanchon's original application, could provide a wealth of useful information. DELL