Identifier
Created
Classification
Origin
07DUBLIN844
2007-11-14 13:45:00
CONFIDENTIAL
Embassy Dublin
Cable title:  

IRELAND SUPPORTIVE OF FATF STATEMENT AND GUIDANCE

Tags:  PARM PREL MNUC ECON EI 
pdf how-to read a cable
VZCZCXYZ0013
RR RUEHWEB

DE RUEHDL #0844 3181345
ZNY CCCCC ZZH
R 141345Z NOV 07
FM AMEMBASSY DUBLIN
TO SECSTATE WASHDC 8713
C O N F I D E N T I A L DUBLIN 000844 

SIPDIS

SIPDIS

STATE FOR ISN/CPI - MICHELLE NEW
PLEASE PASS TO TREASURY FOR LADANARCHIN

E.O. 12958: DECL: 11/14/2017
TAGS: PARM PREL MNUC ECON EI
SUBJECT: IRELAND SUPPORTIVE OF FATF STATEMENT AND GUIDANCE
ON IRAN

REF: STATE 149648

Classified By: POLITICAL AND ECONOMIC SECTION CHIEF
TED PIERCE FOR REASONS 1.4 (B) AND (D).

C O N F I D E N T I A L DUBLIN 000844

SIPDIS

SIPDIS

STATE FOR ISN/CPI - MICHELLE NEW
PLEASE PASS TO TREASURY FOR LADANARCHIN

E.O. 12958: DECL: 11/14/2017
TAGS: PARM PREL MNUC ECON EI
SUBJECT: IRELAND SUPPORTIVE OF FATF STATEMENT AND GUIDANCE
ON IRAN

REF: STATE 149648

Classified By: POLITICAL AND ECONOMIC SECTION CHIEF
TED PIERCE FOR REASONS 1.4 (B) AND (D).


1. (U) Summary: Irish officials say they will ensure
that the recent FATF warning of risks associated with
Iran-related financial transactions, and FATF guidance
on implementing targeted fiancial sanctions aginst
Iran, (reftel) reaches all concerned parties.
Department of Finance officials noted they were
already aware of the information through their
contacts with FATF, saying that Irish banks take
Iranian asset freezes seriously. The Irish Government
will soon issue formal guidance for financial
institutions in implementing financial sanctions
aginst Irn. End Summary.


2. (U) Econoffs delivered poins and background in
reftel to Karen Miller in th International Terrorism
and Illicit Drugs divison of the Department of
Foreign Affairs. While Mller did not have immediate
feedback, she noted hat she would pass the
inormation on to appropriate colleagues in the Middle
East and UN Sanctions sections and that the issue
would be raised at the next Interdepartmental
Sanctions Committee meeting.


3. (U) Also on October 9, Econoffs spoke with
Department of Finance officials Brid Kemple, Assistant
Principal Officer, Taxation and Financial Services
Division, and Dermot Keane, Principal Officer,
Domestic Financial Regulation Unit. Kemple informed
Econoffs that she was already aware of the information
in reftel through her contacts with the FATF and that
the government and Irish banks take the issue of asset
freezes seriously. Kemple added that the
Interdepartmental Sanctions Committee, formed in 2006,
meets regularly to deal with sanctions issues that
cross department lines, such as asset freezes, trade
sanctions, and visa bans.


4. (C) Kemple and Keane informed Econoffs about the
asset freeze process in Ireland, noting that Ireland
does not freeze assets without an implementing EU
regulation. While Dublin could implement a domestic
regulation, there would be no advantage to doing so as
the standards and timeframe would be the same as the
EU. Typically, the EU Commission takes a few days after
UN action to implement its own measures. Keane
suggested that it would be useful for the EU to speed
up this process. While Irish banks officially cannot
freeze assets without an EU regulation, in practice,
they are aware of US and UN lists and can process
transactions slowly, or hold payments, until the EU
regulation becomes effective.


5. (SBU) According to Kemple, Department of Finance
officials plan to meet with banking and trade
officials in two weeks to begin to develop formal
domestic guidance to further assist financial
institutions in implementing sanctions including, for
example, a list of the exports requiring licenses.
Kemple noted that they will be looking to
counterterrorism guidance as a possible template, as
well as how banks have implemented previous political
sanctions.


6. (U) Kemple and Keane noted that Irish banks do not
want to harm their relationship with the United States
and therefore are quite diligent in enforcing
sanctions. However, they are sometimes in a difficult
position as they are open to legal action if a
customer is targeted unfairly. One of the biggest
problems for banks is "false positives," which Kemple
explained is primarily due to software issues.
FOLEY