DEMARCHE DELIVERED: FATF STATEMENT AND GUIDANCE ON

S E C R E T TEL AVIV 003202 SIPDIS SIPDIS PLEASE PASS TO ISN, T, TREASURY E.O. 12958: DECL: 11/01/2017 TAGS: PARM PREL MNUC ECON IL SUBJECT: DEMARCHE DELIVERED: FATF STATEMENT AND GUIDANCE ON IRAN REF: SECSTATE 149648 Classified By: Ambassador Richard H. Jones for reasons 1.4 (b/d). ¶1. (U) This is an action request; see paragraph (4). ¶2. (U) Econoff delivered reftel demarche on October 29 to Ariel Shafransky, Director of Counter-Terrorism Finance at the Ministry of Foreign Affairs. The Government of Israel (GOI) welcomed the announcement, and strongly supported efforts to caution international financial institutions about the risks of doing business with Iran. It is illegal for Israeli banks and companies to maintain any contact with Iranian entities, and would therefore be redundant to distribute the FATF announcement within Israel. Econoff also delivered reftel to Yehuda Shaffer, Director of the Israel Money Laundering and Terror Financing Prohibition Authority, who noted that the FATF announcement has no binding authority and will only be effective if used for leverage with the private sector. ¶3. (S) The GOI is very interested in strategic coordination with the USG to utilize the FATF statement in convincing foreign governments and companies to reduce or eliminate business with Iran. In previous discussions on FATF issues, Itai Yonat, Director of Counter-Terrorism Finance for Israeli Defense Intelligence, noted that the GOI had contacts in China who would be able to use the FATF position in risk-management discussions with bank executives. Paul Goodvach of Mossad praised the Department of Treasury for including references to the FATF statement in the October 25 designation of the Islamic Revolutionary Guard Corps and other Iranian entities. ¶4. (S) ACTION REQUEST: Both Yonat and Goodvach requested feedback from the USG on whether it would be helpful for the GOI to apply pressure in China and elsewhere. END. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES