IRAN,S BANK MARKAZI OPENS NEW ACCOUNTS IN EUROPE

S E C R E T STATE 132904 SIPDIS SIPDIS E.O. 12958: DECL: 09/20/2017 TAGS: KNNP MNUC IR BO FR IT UK SUBJECT: IRAN,S BANK MARKAZI OPENS NEW ACCOUNTS IN EUROPE Classified By: EUR/PRA Dir. Anita Friedt for reasons 1.4 (b) and (d). ¶1. (U) This is an action request. Please see paragraph 3. -------------- SUMMARY -------------- ¶2. (S) Washington wants to alert authorities in Belarus, France, Italy, and the United Kingdom that Iran's Central Bank, Bank Markazi, has opened new accounts in Europe. Washington requests posts urge appropriate host government officials in Italy, Belarus, France and the UK to maintain vigilance with regard to Iranian financial transactions in their jurisdictions. Governments should be on the lookout for any Iranian efforts to further their proliferation-related activities and circumvent UNSCR sanctions. -------------- . -------------- OBJECTIVES/ACTION REQUEST -------------- . -------------- ¶3. (S) Washington requests posts deliver the talking points and non-paper in paragraph 4 to appropriate host government officials in the foreign affairs and financial ministries. Post should pursue the following objectives: -- (S) Alert host government officials to information we have about Iranian financial activities that are occurring at banks in their country, and urge appropriate authorities to investigate such transactions, and to take steps to freeze any accounts or transactions held or conducted in support of proliferation-related activities. -- (S) Urge host governments to maintain increased vigilance over financial or commercial transactions with Iranian entities and banks in its jurisdiction. -------------- BACKGROUND AND NONPAPER -------------- ¶4. BEGIN SECRET/REL ITALY, FRANCE, BELARUS, UNITED KINGDOM NON-PAPER: -- In the spirit of our shared interest in combating the proliferation of weapons of mass destruction and their means of delivery, we would like to alert you to ongoing Iranian financial activity. -- The U.S. has information that the Central Bank of Iran (Bank Markazi) opened new accounts as of early August 2007 with banks in (Embassy insert country name). FOR ITALY ONLY -- Bank Markazi opened the account at UBAE Arab Italian Bank SpA, Rome; Currency: British Pound Sterling. FOR BELARUS ONLY -- Bank Markazi opened the account at National Bank of the Republic of Belarus, Minsk; Currency: U.S. dollar, Euro, and probably a gold deposit account. FOR FRANCE ONLY -- Bank Markazi opened the account at Natixis SA, Paris; Currency: Euro. FOR UK ONLY -- Bank Markazi opened the account at Bank Saderat, PLC, London; Currency: Japanese Yen and Euro. -- As you know, the UN Security Council unanimously adopted under Chapter VII UNSCRs 1737 and 1747, which require UN Member States to apply targeted sanctions to entities and individuals designated in the resolutions for their involvement with Iran's proliferation-sensitive nuclear activities or ballistic missile program. Member States are required to prevent the provision of financial assets or economic resources to designated individuals/entities, and to freeze their assets as well as those of entities "owned or controlled" by them or persons/entities acting on their behalf (operative paragraph 12 of UNSCR 1737). In addition, UN Member States are required to prevent the provision of any financial services related to the transfer or use of the proliferation sensitive items prohibited in UNSCR 1737 (paragraph 6 of UNSCR 1737). -- Bank Markazi is not designated under UNSCRs 1737 or 1747, but it is nevertheless critical that Member States take steps to ensure that financial services provided to Bank Markazi are not used for proliferation purposes or by designated entities/individuals to circumvent the restrictions unanimously adopted by the UN in UNSCRs 1737 and 1747. -- The United States urges your government to carefully monitor Bank Markazi's activities and prevent the use of these new accounts by Bank Markazi or individuals associated with Bank Markazi to circumvent UNSCRs 1737 and 1747. -- Washington urges you to maintain increased vigilance over all financial or commercial transactions with Iranian entities and banks in your jurisdiction. -- We look forward to working with you on this and other related Iran counter-proliferation matters. END SECRET/REL ITALY, FRANCE, BELARUS, UNITED KINGDOM 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