USG CONCERNS ABOUT IMPLEMENTATION OF UNSCR 1747

S E C R E T ABU DHABI 000547

SIPDIS

SIPDIS

STATE FOR NEA/IR, NEA/ARP, ISN/CPI, EEB
TREASURY FOR RACHEL LOEFFLER
NSC FOR DAVID STEVENS

E.O. 12958: DECL: 01/02/2017
TAGS: KNNP EFIN PARM IR AE
SUBJECT: USG CONCERNS ABOUT IMPLEMENTATION OF UNSCR 1747
WITH RESPECT TO BANK SEPAH - UAE RESPONSE

REF: A. SECSTATE 40440

B. ABU DHABI 526

C. ABU DHABI 510

D. ABU DHABI 473

Classified By: DCM Martin Quinn for reasons 1.4 (b) and (d).


1. (S) On April 1, Econchief discussed the UAE's
implementation of UNSCR 1747 with regard to Bank Sepah with
Ahmed Al-Qamzi, Head of the UAE Anti Money Laundering and
Suspicious Cases Unit's (AMLSCU) International Division, and
passed him information that we had on reported Bank Sepah
correspondent accounts and activities. Al-Qamzi said that
the Central Bank had sent instructions earlier that day to
all banks and financial institutions in the UAE to search for
and freeze the assets of Bank Sepah and Bank Sepah
International (as well as the assets of the other named
individuals and entities in UNSCR 1747).


2. (S) Al-Qamzi said that he had already heard on his "open"
e-mail from money changers that they had received the
instructions and were complying. He had not yet had the
opportunity to open the "secure" e-mail to banks to see their
responses. Al-Qamzi added that he would be following-up
personally with certain banks on April 2 and thanked
Econchief for the information provided about Bank Sepah. In
response to Econchief's question about what steps the Central
Bank was taking to ensure that assets were frozen and
correspondent accounts were closed, Al-Qamzi reminded him
that the Central Bank had issued an internal circular to its
bank examiners to scrutinize Iranian transactions closely
(ref d). The AMLSCU and the banking examiners would both be
verifying that financial institutions were taking appropriate
action. He added that financial institutions were already
nervous about dealing with Iran and that the banks' own
internal and external auditors were charged with ensuring
that they adhered to all Central Bank regulations.


3. (S) Econchief asked when Al-Qamzi thought he might have
some information about Bank Sepah's accounts in the UAE and
whether there might have been asset flight. Al-Qamzi said
that the Central Bank would be conducting its assessment and
sending a report to the Ministry of Foreign Affairs, which
would be responsible for responding to the UN.
SISON