CANADA'S POSITIVE RESPONSE TO UNSCR 1737 DEMARCHE

UNCLAS OTTAWA 000316 SIPDIS SENSITIVE SIPDIS STATE FOR NEA, T, WHA/CAN, EEB/ESC/TFS, AND ISN/CPI (JENNIFER CHAMBERS AND JOSH KIRSHNER) E.O. 12958: N/A TAGS: PARM PREL KNNP EFIN ETTC IR CA SUBJECT: CANADA'S POSITIVE RESPONSE TO UNSCR 1737 DEMARCHE REF: STATE 16917 ¶1. (SBU) In response to reftel delivered by Economic Minister Counselor to Mark Gwozdecky, Department of Foreign Affairs and International Trade (DFAIT) Non-Proliferation and Disarmament Nuclear Division Director, Gwozdecky said that Canada shares the United States' view of the risks of Iran's nuclear program. ¶2. (SBU) Carolyn Knobel, DFAIT, United Nations, Human Rights, and Economic Law Division Deputy Director explained that the GOC has been working since December to create implementing regulations for UNSCR 1737 and are nearing completion; the regulations could be introduced as early as next week once they are approved by the cabinet. She explained that the new regulations will mirror the Security Council resolution and all listed individuals and entities will be subject to asset freezes. Their names will be added to the Terrorist Financing list maintained by the Office of the Superintendent of Financial Institutions Canada by which all Canadian financial institutions must vet new accounts and periodically review existing accounts. ¶3. (SBU) However, she noted that Aerospace Industries Organization (AIO) was not listed in the resolution though its subsidiaries and executives were. Therefore, Canada will not be instituting a complete ban on financial transactions in Canada for AIO. Knobel did not know if AIO has any presence in Canada. ¶4. (SBU) Knobel explained that Canada will adhere to all Security Council Resolutions but the GOC,s preferred approach to financial sanctions is consistent with article six of the resolution - to examine all transactions, blocking suspicious activity, rather than attempting to identify and list all individuals and entities suspected of funneling money to Iran or other areas of concern. This brings Canadian border agencies into the enforcement picture. ¶5. (SBU) Knobel also said that it would be very helpful to have additional information, including aliases, dates of birth, addresses and other identifying information, about the individuals and entities listed in UNSCR 1737. ¶6. (SBU) Meeting Participants: Canadian Side: Mark Gwozdecky - DFAIT Non-Proliferation and Disarmament Nuclear Division Director Carolyn Knobel - DFAIT Economic Law Section, United Nations, Human Rights, and Economic Law Division Deputy Director Shawn Caza - DFAIT Non-Proliferation and Disarmament Nuclear Division Deputy Director Marc-Antoine Dumas - DFAIT United Nations, Human Rights, and Economic Law Division Legal Officer Craig Weichel - DFAIT Non-Proliferation and Disarmament Nuclear Division Policy Officer David Da Silva - DFAIT Non-Proliferation and Disarmament Nuclear Division Policy Officer U.S. Side: Brian Mohler ) U.S. Embassy Ottawa Economic Minister Counselor Ryan Stoner ) U.S. Embassy Ottawa Economic Officer Visit Canada's Classified Web Site at http://www.state.sgov.gov/p/wha/ottawa WILKINS