INFORMATION ON IRANIAN FINANCIAL TRANSFERS ROUTED

S E C R E T STATE 129815 SIPDIS SIPDIS E.O. 12958: DECL: 09/14/2017 TAGS: KNNP MNUC IR BA GM SUBJECT: INFORMATION ON IRANIAN FINANCIAL TRANSFERS ROUTED THROUGH DRESDNER BANK REF: EUP20070822085001 Classified By: EUR/AGS OD Patrick Moon for reasons 1.4 (b) and (d). ¶1. (U) This is an action request. Please see paragraph 3. -------------- SUMMARY -------------- ¶2. (S) In August 2007, Dresdner Bank decided to wind down its business with Iranian private and corporate customers, including state-run companies. This follows decisions by Deutsche Bank and Commerzbank to curtail their business with Iranian customers. Washington commends Dresdner Bank, Commerzbank, and Deutsche Bank for their decisions. In the interest of winding up any financial transactions of concern, Washington would like to share information with Germany about Mohammad Javad Jafari. The U.S. has information that Jafari, who is involved in the Iranian ballistic missile program, used Dresdner Bank in Germany to transfer funds. We want to ensure that Dresdner Bank ends its business relationship with Jafari as it ceases its relationships with its other Iranian clients. Furthermore, we need to ensure that Dresdner Bank ends its relationship with Jafari immediately (as opposed to winding down as pre-existing contracts run out) due to his involvement with Iran's ballistic missile program and the possibility that his transactions might be in violation of applicable UN Security Council resolutions. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (S) Washington requests Post deliver the talking points and non-paper in paragraph 4 to appropriate host government officials in the foreign affairs and financial ministries. -- (S) To indicate appreciation for Germany's effective implementation of UNSCRs 1737 and 1747, and to welcome the recent movement of its private banks to wind down Iran-related activity. -- (S) To provide host government officials information on Mohammad Javad Jafari's financial activities at Dresdner Bank and seek confirmation that Dresdner Bank's termination of its Iranian business will include any transactions relating to Jafari. -------------- BACKGROUND AND NONPAPER -------------- ¶4. BEGIN SECRET/REL GERMANY NON-PAPER: -- The U.S. commends Dresdner Bank, Commerzbank, and Deutsche Bank for ending their relationships with Iran. These steps demonstrate that banks and firms are beginning to see the serious business risks that are inherent in working with Iran. -- It is in this context and in the spirit of our shared commitment to combating WMD and missile proliferation that we would like to alert German authorities to possible proliferation-related activities involving Dresdner Bank. -- The U.S. has information that Mohammad Javad Jafari, who is involved in Iran's ballistic missile program, has been routing payments through Dresdner Bank since early July. These payments associated with Iran's missile program were routed through Bank Sepah, Tehran. -- The involvement of Bank Sepah and entities known to be associated with Iran's missile program suggests these transactions are proliferation-related. -- We would like to confirm that Dresdner's decision to end its business relationship with Iran will include closing Jafari's accounts and ending his ability to use Dresdner Bank for transactions on behalf of Iran's ballistic missile program. -- We recognize that the actions taken by Dresdner Bank in August may already cover Jafari's activities, but we wanted to share this information with you to ensure that his activities are covered by Dresdner Bank's decision. -- The U.S. greatly appreciates the steps that Deutsche Bank and Dresdner Bank have taken to end their financial relationships with Iran and look forward to hearing from you on this and future nonproliferation matters. END SECRET/REL GERMANY NON-PAPER. -------------- REPORTING DEADLINE -------------- ¶5. (U) Post should report results within seven (7) business days of receipt of this cable. Please slug replies for ISN, T, TREASURY, EUR, and NEA. Please include SIPDIS in all replies. -------------- POINT OF CONTACT -------------- ¶6. (U) Washington point of contact for follow-up information is Kevin McGeehan, ISN/CPI, (202) 647-5408, McGeehanKJ@state.sgov.gov. ¶7. (U) Department thanks Post for its assistance. RICE