FRANCE RESTRICTS TRANSACTIONS WITH ENTITIES AND

C O N F I D E N T I A L PARIS 000577 SIPDIS SIPDIS STATE FOR EUR/WE; ISN; T; NEA/IR; EB/IFD/ODF AND EB/ESC/TFS; TREASURY FOR IA/OFFICE OF TRADE FINANCE E.O. 12958: DECL: 02/13/2017 TAGS: PREL EFIN MNUC EXIM UNSC EUN PARM IR FR SUBJECT: FRANCE RESTRICTS TRANSACTIONS WITH ENTITIES AND INDIVIDUALS IN UNSC 1737 ANNEX REF: A) PARIS 544 AND PREVIOUS B) STATE 16917 Classified By: Political Minister-Counselor Josiah Rosenblatt, Reason 1 .4 B/D ¶1. (C) On February 12, per ref b, we raised with the MFA's Nonproliferation office the need to freeze assets of Iranian entities and persons not specifically listed in the annex of UNSC 1737. David Bertolotti, deputy to the DAS-equivalent Director for Nonproliferation, took note of our demarche, observed that discussions were ongoing within the ministry, and promised to get back to us with respect to any new decisions. ¶2. (C) Bertolotti also confirmed ref a Finance Ministry discussions on imposing exchange controls on Iran and pointed to the new February 9 GOF decree (No. 2007-169),which effectively allows the Government to implement financial sanctions on legal entities and individuals listed in the annex of UNSC 1737. ¶3. (U) Article I of the decree, which cites the French Monetary and Financial code, specifically articles L. 151-1 and L. 151-2, states that legal entities and individuals listed in the Annex of UNSC 1737 must obtain pre-authorization from the Minister of the Economy and Finance in order to effect the following (informal embassy translation): -- currency transactions, capital flows and the settlement of all types of accounts, which take place between France and abroad, by or on behalf of individuals and legal entities mentioned in the Annex or controlled by them, or; -- the financing and selling of investments in France by and for these individuals and legal entities mentioned in the Annex or controlled by them. ¶3. (U) Article II notes that the decree is also applicable in Mayotte, New Caledonia, French Polynesia, and the islands of Wallis and Futuna. ¶4. (U) Article III states that the Minister of Economy, Finance and Industry, as well as the Minister for overseas territories are responsible for the implementation of the decree. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm STAPLETON