FATF/IRAN STATEMENT: FULL BULGARIAN SUPPORT ON

C O N F I D E N T I A L SOFIA 001301 SIPDIS SIPDIS STATE FOR EB/ESC/TFS, S/CT, EUR/PGI, T, IO/PSC STATE ALSO FOR ISN/CPI (MNEW) AND EUR/WE (TSMITH) TREASURY FOR TFFC (LARCHIN) E.O. 12958: DECL: X1 TAGS: PARM PREL MNUC ECON EFIN KNNP IR BU SUBJECT: FATF/IRAN STATEMENT: FULL BULGARIAN SUPPORT ON THE FINANCIAL FRONT REF: A) STATE 149649 B) STATE 148605 Classified By: POLECON Chief Jim Bigus for reasons 1.4b and d. ¶1. (C) Econoff delivered ref A and B demarches to Dr. Vasil Kirov, Director of the Bulgarian Financial Intelligence Agency (FIA) on 02 November. Appropriately, Dr. Kirov, is also the current Chairman of MONEYVAL, one of the leading "FATF-style" Regional Bodies (FSRB). Dr. Kirov was fully supportive of the FATF statement on Iran and provided assurances that all Bulgarian banking institutions would be informed via an official FIA circular announcement on 05 November about the dangers that the Iranian financial system posed in the areas of proliferation activities, money laundering, and financing of terrorism. Dr. Kirov also promised to disseminate ref B information to the Bulgarian banking community's compliance officers per FIA's standard operating practice. It is worth noting that despite Bulgaria's 2007 entry and compliance with EU rules and regulations, the FIA has directed and repeatedly encouraged Bulgarian banks to utilize the Department of Treasury's Office of Foreign Assets Control (OFAC) Internet website to serve as a baseline of information on various people and entities "of concern". On 05 November, Post received a copy of the FIA circular announcement which uses many of ref A talking points verbatim. ¶2. (C) Kirov stated that he expected the FATF/FIA circular to generate an increase in "suspicious transaction reports" (STRs) which he would subsequently share with Post as appropriate. The FIA summarized overall Iranian financial activity in Bulgaria as "low", noting that most of the local Iranian expatriate and student communities dealt in frequent, but low dollar amount, financial transactions. That said, Kirov confided that the FIA remained on the lookout for an increase in Iranian business investments due to Bulgaria's new EU membership and a booming real estate market throughout the country. Post will follow up and report any substantive information received or additional actions taken. Beyrle