PAKISTAN'S IMPLEMENTATION OF UNSCR 1747 ASSET FREEZE AGAINST

S E C R E T ISLAMABAD 002252 SIPDIS STATE FOR ISN/CPI - JCHALMERS, AND NEA/IR - SMISKO TREASURY FOR TFFC - RLOEFFLER SIPDIS E.O. 12958: DECL: 05/18/2017 TAGS: EFIN KNNP PARM IR DA SW PK SUBJECT: PAKISTAN'S IMPLEMENTATION OF UNSCR 1747 ASSET FREEZE AGAINST SEPAH BANK AND OTHER LISTED ENTITIES Classified by Economic Counselor Mary Townswick for reasons 1.4 (b) and (d). Ref: State 60238 ¶1. (S) The External Finance Division of Pakistan's Finance Ministry detailed to Econ the country's procedures for implementing the asset freeze provisions of UNSCR 1747. The MFA is the entity that receives updates from the UN on additions to the 1747 designee list and then has this information published in Pakistan's official Gazette. At the same time, the MFA sends the information to the Finance Ministry, which in turn sends the information to the State Bank of Pakistan. The State Bank instructs all banks operating in the country to freeze any accounts of 1747 designees. ¶2. (S) The State Bank normally sends information on new 1747 designees, along with instructions to banks to freeze these accounts, the same day it receives the updated notifications. However, in the case of banks that are less technologically sophisticated, dissemination of such instructions can take up to two days. The banks are required to immediately instruct all of their branches to enforce the freeze. The State bank works with individual banks' compliance officers to confirm that the freeze orders are being enforced. Finally, the State Bank reports back to the Finance Ministry on any accounts that are frozen as a result of banks' 1747 enforcement actions. ¶3. (S) Per reftel request, Econ has also been seeking information from the Finance Ministry as to what actions have been taken specifically with respect to freezing assets of Bank Sepah and Bank Sepah International. While we have been assured by Finance officials that they are working to obtain the information we requested, Econ is still awaiting the promised response. Post will continue to press for information as to what action the GOP has taken against Sepah. Bodde