CZECH RESPONSE: DESIGNATION OF IRAN'S DEFENSE

C O N F I D E N T I A L PRAGUE 000368 SIPDIS SIPDIS DEPT FOR ISN, EUR, EAP AND NEA. DEPT PLEASE PASS TO ISN/CPI JENNIFER CHALMERS OR ANTHONY RUGGIERO E.O. 12958: DECL: 04/06/2017 TAGS: PREL KNNP PARM IR KN EZ SUBJECT: CZECH RESPONSE: DESIGNATION OF IRAN'S DEFENSE INDUSTRIES ORGANIZATIONS UNDER E.O. 13382 REF: STATE 40909 Classified By: Political Economic Counselor Michael Dodman for reasons 1.4 b+d ¶1. (C) On April 2, Poloff delivered reftel demarche to Pavel Klucky, Head of the Nonproliferation and Disarmament Unit in the UN Department at the Czech MFA. Klucky stated that the Czech government would need some time to formulate a response. On April 6, Poloff again contacted Klucky, who reported that the Czech government is working on following the U.S. lead in designating Iran's Defense Industries Organization (DIO) as a proliferator and in prohibiting business contact with DIO. Klucky stated that the Ministry of Finance has the lead on such matters and stated that he had been working specifically with the Ministry of Finance's Financial Analytic Unit (FAU) which also is in charge of investigation of money laundering cases in the Czech Republic. The FAU is currently working on writing specific implementing regulations to ensure that Czech law also prohibits any business interaction with DIO, Klucky stated. GRABER