SEPAH ASSETS UPDATE

S E C R E T ABU DHABI 000761 SIPDIS STATE FOR ISN/CPI (JCHALMERS),NEA/IR (SMISKO) TREASURY FOR RLOEFFLER E.O. 12958: DECL: 05/09/2017 TAGS: EFIN KNNP IR PARM DA SW AE SUBJECT: SEPAH ASSETS UPDATE REF: A. STATE 60238 ¶B. ABU DHABI 590 Classified By: Deputy Chief of Mission Martin Quinn, for reasons 1.4 b and d. ¶1. (S) The UAE Central Bank issued a circular to all UAE banks to freeze assets under 1747 within four days of the UN resolution (Ref A). The UAE has not reported the total amount of assets frozen but the Central Bank Governor, Sultan bin Nasser al Suweidi, informed Treasury Assistant Secretary Patrick O,Brien on April 25, 2007 that there have only been a few accounts frozen that were for Bank Sepah and there was very little money. Governor Suweidi said most Bank Sepah related transactions were trade financing, which were blocked. (Septel) Governor Suweidi also reported that the Central Bank is preparing the 60 day UN report regarding its implementation of UNSCR 1747. ¶2. (S) Post does not have evidence of asset flight and was informed by the Head of the International Division of the Anti-Money Laundering and Suspicious Cases Unit that even Iranian Banks Melli and Saderat had reported to the Central Bank about frozen accounts (Ref B). (Note. Bank Sepah does not have operations or a branch in the UAE. End note). ¶3. (S) Financial institution representatives, that emboffs have contacted, confirm that they have received the Central Bank circular. SISON