Identifier
Created
Classification
Origin
07PARIS4430
2007-11-06 17:05:00
SECRET//NOFORN
Embassy Paris
Cable title:
INFORMATION REQUEST: IDENTIFYING TOOLS FOR
how-toVZCZCXYZ0008 RR RUEHWEB DE RUEHFR #4430 3101705 ZNY SSSSS ZZH R 061705Z NOV 07 FM AMEMBASSY PARIS TO RUEHC/SECSTATE WASHDC 1023 INFO RUEATRS/DEPARTMENT OF TREASURY WASHDC
S E C R E T PARIS 004430
SIPDIS
NOFORN
SIPDIS
STATE FOR EUR/WE (TSMITH) AND EEB/ESC/TFS (SCOULTER)
STATE ALSO FOR ISN AND NEA
E.O. 12958: DECL: 11/06/2017
TAGS: EFIN PREL KNNP PARM ETTC IR FR
SUBJECT: INFORMATION REQUEST: IDENTIFYING TOOLS FOR
POSSIBLE USE AGAINST IRANIAN FINANCIAL INSTITUTIONS
REF: SECSTATE 149523
Classified By: ECON MINCOUNS SETH WINNICK FOR REASONS 1.4 B AND D
(S/NF) In response to reftel, Embassy submits the following
information regarding possible tools for use against Iranian
financial institutions.
-- As regards licensing, the Committee of Credit
Establishments and Investment Companies issues licenses to
credit institutions but only the Banking Commission
(Commission bancaire) can revocation licenses for legal or
disciplinary reasons. Both bodies are chaired by the
governor of the French central bank, with the latter composed
almost entirely of government officials. In addition to
monitoring respect for technical requirements, such as
professional standards and prudential rules, the Banking
Commission also charged with assuring that rules relating to
combating money laundering and terrorism finance are also
respected. The GOF is preparing legislation that makes
proliferation and proliferation finance a separate crime. It
is scheduled to be presented to Parliament in November and
take effect in the first half of 2008. Asset freezing
generally is the national application of EU and UN sanctions.
-- Revocation of a license is the most severe disciplinary
sanction possible, in a menu of Banking Commission measures
against infringements of legal or regulatory rules (Article
L.613-21, Monetary and Financial Code). It is not clear what
the legal threshold is for its application, as the Commission
appears to have far-reaching discretion in the matter. On
the other hand, French authorities have moved swiftly to shut
down operations of entities subject to sanctions pursuant to
UNSC and/or EU/CFSP common position (since ratification of
the Amsterdam Treaty).
-- Other than revoking operating licenses, are there other
host government legal mechanisms which could be used to cut
off Iran-related financial transactions? For example, can
the host government monitor or prevent Iranian banks from
engaging directly or indirectly in transactions denominated
in the host nation currency?
-- Under existing money-laundering legislation, banks and
other financial institutions can be obliged to report all
transactions (regardless of size) with certain classes of
entities to the financial intelligence unit (French acronym:
TRACFIN),including any time the principal or beneficiary of
a transaction is unknown. In addition, the government can
issue a decree imposing such reporting on transactions
carried out by or for natural or legal persons, including
their subsidiaries or establishments, that are domiciled,
registered, or established in any country included on the
Financial Action Task Force list of Non-cooperative Countries
or Territories (NCCT).
--Given that the French have been pretty forward-leaning in
wanting to discuss how best to put pressure on Iran to stop
its enrichment program, it would definitely be
counter-productive not to have consultations before making
requests for specific administrative or legal actions.
Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm
PEKALA
SIPDIS
NOFORN
SIPDIS
STATE FOR EUR/WE (TSMITH) AND EEB/ESC/TFS (SCOULTER)
STATE ALSO FOR ISN AND NEA
E.O. 12958: DECL: 11/06/2017
TAGS: EFIN PREL KNNP PARM ETTC IR FR
SUBJECT: INFORMATION REQUEST: IDENTIFYING TOOLS FOR
POSSIBLE USE AGAINST IRANIAN FINANCIAL INSTITUTIONS
REF: SECSTATE 149523
Classified By: ECON MINCOUNS SETH WINNICK FOR REASONS 1.4 B AND D
(S/NF) In response to reftel, Embassy submits the following
information regarding possible tools for use against Iranian
financial institutions.
-- As regards licensing, the Committee of Credit
Establishments and Investment Companies issues licenses to
credit institutions but only the Banking Commission
(Commission bancaire) can revocation licenses for legal or
disciplinary reasons. Both bodies are chaired by the
governor of the French central bank, with the latter composed
almost entirely of government officials. In addition to
monitoring respect for technical requirements, such as
professional standards and prudential rules, the Banking
Commission also charged with assuring that rules relating to
combating money laundering and terrorism finance are also
respected. The GOF is preparing legislation that makes
proliferation and proliferation finance a separate crime. It
is scheduled to be presented to Parliament in November and
take effect in the first half of 2008. Asset freezing
generally is the national application of EU and UN sanctions.
-- Revocation of a license is the most severe disciplinary
sanction possible, in a menu of Banking Commission measures
against infringements of legal or regulatory rules (Article
L.613-21, Monetary and Financial Code). It is not clear what
the legal threshold is for its application, as the Commission
appears to have far-reaching discretion in the matter. On
the other hand, French authorities have moved swiftly to shut
down operations of entities subject to sanctions pursuant to
UNSC and/or EU/CFSP common position (since ratification of
the Amsterdam Treaty).
-- Other than revoking operating licenses, are there other
host government legal mechanisms which could be used to cut
off Iran-related financial transactions? For example, can
the host government monitor or prevent Iranian banks from
engaging directly or indirectly in transactions denominated
in the host nation currency?
-- Under existing money-laundering legislation, banks and
other financial institutions can be obliged to report all
transactions (regardless of size) with certain classes of
entities to the financial intelligence unit (French acronym:
TRACFIN),including any time the principal or beneficiary of
a transaction is unknown. In addition, the government can
issue a decree imposing such reporting on transactions
carried out by or for natural or legal persons, including
their subsidiaries or establishments, that are domiciled,
registered, or established in any country included on the
Financial Action Task Force list of Non-cooperative Countries
or Territories (NCCT).
--Given that the French have been pretty forward-leaning in
wanting to discuss how best to put pressure on Iran to stop
its enrichment program, it would definitely be
counter-productive not to have consultations before making
requests for specific administrative or legal actions.
Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm
PEKALA