DEMARCHE DELIVERED TO UAE FOR DELAY OR WITHDRAWAL

C O N F I D E N T I A L ABU DHABI 001123 SIPDIS SIPDIS DEPT FOR NEA/ARP, NEA/RA, ISN/CPI - MCGEEHAN, IO TREASURY FOR CURTIS AND HECHT E.O. 12958: DECL: 07/04/2017 TAGS: PREL PARM AADP IR AE SUBJECT: DEMARCHE DELIVERED TO UAE FOR DELAY OR WITHDRAWAL OF SANCTIONS NOTICE REF: SECSTATE 93145 Classified By: Ambassador Michele J. Sison for reasons 1.4 (b & d). ¶1. (C) On July 4, Ambassador contacted UAE Minister of State for Foreign Affairs Mohammed Hussein Al-Shaali to inform him of USG concerns related to the UAEG's notification to the UNSC 1737 Sanctions committee to unfreeze certain Sepah-related funds. Ambassador asked that the UAEG delay or withdraw its request and provide further details about the nature of the transactions. Al-Shaali was not familiar with the issue, but listened carefully and took note of the six UAEG banks under discussion. He undertook to telephone the UAE's permrep to the UN, Ambassador Abdulaziz Al-Shamsi, to pursue further. ¶2. (C) The same day, Econchief contacted Ahmed Al-Qamzi, Head of the International Division for the UAE Central Bank's Anti Money Laundering and Suspicious Cases Unit (AMLSCU) to make the same request. Al-Qamzi said that it should be possible to get the additional information, although he added that he thought that it might be preferable if the UNSC 1737 Committee made the request for information. He also speculated that it could be possible to release the assets before providing the information, since UAE banks were "suffering" and the payments were not going to designated entities. Econchief pushed back, reiterating the USG request for withdrawal or delay. In response, Al-Qamzi promised to convey USG concerns to Central Bank Governor Al-Suwaidi. ¶3. (C) In any case, Al-Qamzi added, the UAEG did not have an automatic unfreezing policy. The Governor would need to issue an order to banks authorizing them to release the funds. He did not think that Al-Suwaidi would issue that order on July ¶5. In addition, he noted the entire National Anti-Money Laundering Committee would be leaving for a ten day visit to Europe on July 8, which should give some time/flexibility. ¶4. (C) Embassy will continue to follow-up with both MFA and AMLSCU. SISON