U.S. SANCTIONS AGAINST BURMA - DEMARCHE DELIVERED

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 001941

SIPDIS

SIPDIS

EAP/MLS FOR AARON COPE

E.O. 12958: DECL: 10/22/2017
TAGS: PGOV PHUM CVIS ETRD ETTC EFIN BM SN
SUBJECT: U.S. SANCTIONS AGAINST BURMA - DEMARCHE DELIVERED

REF: A. STATE 146862


B. SINGAPORE 1890

C. SINGAPORE 1911

Classified By: DCM Daniel Shields; reasons 1.4 (b) and (d)


1. (C) Summary: Singapore is looking carefully at the
Burmese individuals and Burma-linked entities recently
designated by the U.S. Government, MFA Permanent Secretary
Bilahari Kausikan told the DCM during an October 22 meeting.
Kausikan was responding to Ref A message providing
information on U.S. sanctions and calling on Singapore to
step up the pressure on the regime and to consider
restricting senior regime leaders' access to financial
services. Kausikan said Foreign Minister Yeo will visit
China and Japan in his capacity as ASEAN Chair to prepare for
the East Asia Summit and reinforce Gambari's message on
Burma. FM Yeo is also trying to arrange a visit to India to
pursue this agenda, Kausikan said. End Summary.


2. (C) The DCM met with MFA Permanent Secretary Bilahari
Kausikan on October 22 to deliver Ref A message providing
information on U.S. sanctions and calling on Singapore to
step up the pressure on the regime and to consider
restricting senior regime leaders' access to financial
services. Kausikan responded that Singapore is concerned
about reputational risks for its banking sector and will take
necessary action in accordance with domestic and
international laws. Singapore is looking carefully at the
Burmese individuals and Burma-linked entities recently
designated by Treasury with an eye to detecting any violation
of Singapore law. Singapore
has adequate safeguards, such as suspicious transaction
reporting requirements, to prevent abuse of its financial
system. For banks, Burma is analogous to the DPRK (when
North Korean financial activities came under closer
scrutiny beginning in 2005.) Financial institutions will
have to decide whether their broader business dealings with
the United States are more important than those with Burma,
he said. Regarding companies other than banks, Kausikan said
he had not heard of the U.S.-designated companies either
based in or linked to Singapore. He speculated that these
companies probably have little if any business dealings with
the United States. If that is the case, the issue will be
whether the companies are in compliance with Singapore's
domestic laws, Kausikan said.


3. (C) Kausikan could not confirm rumors that Burmese money
is moving out of Singapore under mounting international
pressure on the junta, but said he would not be surprised if
it is (ref B). The Burmese regime presumably is seeking to
move assets to other jurisdictions with less stringent
requirements than Singapore for combating money laundering
and other illicit activities, he said. Kausikan stated that
Singapore is reluctant to take action against financial
institutions unless there is specific evidence that
ill-gotten gains are involved. He said the GOS will
investigate thoroughly any information that the United States
Government provides.

ASEAN Envoy Concept - Lack of Enthusiasm by Gambari
-------------- --------------


4. (C) Kausikan said Gambari told him on October 21 that
Gambari is "not enthusiastic" about the ASEAN envoy idea.
Gambari is concerned that creation of an ASEAN envoy would
result in multiple channels that will complicate dialogue
with the GOB, Kausikan said (ref C). Kausikan urged that the
United States allow time for Gambari to engage the regime
through his next visit to Rangoon. Singapore's approach is
to do whatever will help Gambari, he concluded.

Next Steps for ASEAN
--------------


5. (C) Asked what else ASEAN can do to increase pressure on

SINGAPORE 00001941 002 OF 002


the Burmese regime, Kausikan said that ASEAN is sending
strong signals to the junta. ASEAN will rely on its "moral
authority" and continue to issue strong statements on Burma.
Foreign Minister Yeo will visit China and Japan in his
capacity as ASEAN Chair to prepare for the East Asia Summit
and reinforce Gambari's message. FM Yeo is also trying to
arrange a visit to India to pursue this agenda, he said.
Kausikan told the DCM that it is difficult for any ASEAN
member to impose sanctions on Burma and that there is "no
way" ASEAN will suspend Burma from the organization; certain
ASEAN members in particular hold firmly to the principle of
non-interference. He noted that the ASEAN Charter is silent
on the matter of expulsion or suspension, leaving this to the
discretion of ASEAN's leaders.

Visit Embassy Singapore's Classified website:
http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm
HERBOLD