(S) MESSAGE ON DPRK'S NEW FINANCIAL NODE FOR

S E C R E T BERLIN 001102 SIPDIS STATE FOR ISN, T, TREASURY, EUR, AND EAP SIPDIS E.O. 12958: DECL: 05/31/2027 TAGS: PREL KNNP KNAR PARM GM SUBJECT: (S) MESSAGE ON DPRK'S NEW FINANCIAL NODE FOR PROLIFERATION TRANSACTIONS DELIVERED TO GERMANY REF: STATE 72416 Classified By: Deputy Chief of Mission John M. Koenig, for reasons 1.4 (b) and (d). ¶1. (U) Please see the action request in paragraph 5. ¶2. (S) Global Affairs officer delivered ref demarche in separate meetings May 29 to officials in the German Ministries of Economics and Foreign Affairs. Ursina Krumpholz, Office Director of the Ministry of Economics' Foreign Trade Law and Law of the Sea Division, and Claudia Schuett, desk officer in the MFA's International Economic and Financial Policy Division, said they will pass the information to other appropriate government officials for discussion and investigation. ¶3. (S) In answer to Emboff's question, Krumpholz said the German Government, in this case the Finance Ministry, has the authority to investigate the records of any bank in Germany engaged in foreign trade, including the Arab Bank PLC in Frankfurt. Krumpholz cautioned, however, that even with this authority the German Government might have difficulty uncovering evidence of wrongdoing at the Arab Bank PLC, especially if North Korea concealed the nature of its WMD proliferation-related transactions. Provided that the German Government finds evidence of DPRK financial activities in contravention of UNSCR 1718, it could freeze the accounts or transactions involved. To assist the other federal agencies in uncovering evidence of surreptituous DPRK financial activities, Krumpholz said she will pass the information to the German security services. ¶4. (C) Concerning UNSCR 1718, Krumpholz inquired about USG intentions for an annex of sanctioned entities and persons. She asked whether the USG has proposed or plans to propose to the UN Security Council an annex for UNSCR 1718 based on the USG's listing of DPRK entities under Executive Order 13382. ¶5. (U) Post requests guidance to respond to Krumpholz' request regarding an annex of listed entities and persons for UNSC 1718. ¶6. (U) Post will report any substantive German response septel. TIMKEN JR