DEMARCHE DELIVERED: FATF STATEMENT AND GUIDANCE ON

C O N F I D E N T I A L CARACAS 002203

SIPDIS

SIPDIS

FOR T
ISN/CPI FOR MNEW
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR MMALLOY AND LARCHIN
TREASURY/FINCEN FOR MPASTORA
NSC FOR JCARDENAS AND JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON

E.O. 12958: DECL: 11/14/2017
TAGS: PARM PREL MNUC ECON EFIN VE
SUBJECT: DEMARCHE DELIVERED: FATF STATEMENT AND GUIDANCE ON
IRAN

REF: A. STATE 149648

B. CARACAS 1867

C. BOWEN-PASTORA E-MAIL 11/15

Classified By: Economic Counselor Andrew N. Bowen for reasons 1.4 (b) a
nd (d).


1. (C) Emboffs delivered Ref A demarche on the recent
Financial Action Task Force (FATF) decisions concerning Iran
to Yaneth Arocha, Director of the MFA's Office of North
American Affairs, and, separately, to Francisco Canela,
Director of the Financial Intelligence Unit (UNIF) at the
Superintendecy of Banks (SUDEBAN) in the Ministry of Finance.
In reply, Arocha noted the BRV,s long-standing position
that Iran has a right to develop a peaceful nuclear energy
program and that Iran,s nuclear program was not a proper
matter for the UN Security Council to discuss. She said that
she would raise the content of the demarche with her
counterpart in the MFA's Office of Multilateral Affairs.


2. (C) Canela emphasized that Venezuela had laws and
regulations to counter money laundering and terrorist
financing which all financial institutions had to comply
with. He said that the Iranian bank authorized by SUDEBAN to
operate in Venezuela (ref B) had not yet opened because it
had yet to complete all the required paperwork. Canela
assured econoffs that the bank, should it open, would be
subject to all of the BRV's laws and regulations. He noted
that Venezuela was a member of the Egmont group and would not
want to jeopardize its standing by not following its
principles. Finally, Canela stressed that UNIF's work was
not political ("it knows no flags") and that UNIF would
welcome any opportunities for anti-money laundering training
that the USG might be able to provide. Econoffs emphasized
the heightened risks associated with transactions related to
Iran, noting that the Treasury Department had issued a
specific alert to that effect. Canela observed that UNIF was
aware that transactions "related to countries that are
sources of terrorism such as Palestine and Iraq" required a
heightened level of due diligence. He added separately that
UNIF hoped to sign a "bilateral cooperation" MOU with FINCEN
in the next 15 days (ref C).


3. (C) Comment: Arocha's and Canela's replies were what we
expected given Chavez' determination to develop a strategic
relationship with Iran. Arocha spoke from a more political
perspective, reiterating the BRV's policy on Iran's nuclear
program. Canela spoke from a technical perspective,
attempting to reassure econoffs that the BRV's laws and
regulations against money laundering and terrorism finance
were comprehensive and would be implemented objectively and
in accordance with its international obligations. Despite
repeated mention by econoffs of the heightened risks posed by
Iran, however, Canela did not show any inclination to develop
special guidance on Iran-related transactions. End comment.
DUDDY