Identifier
Created
Classification
Origin
07VIENNA2407
2007-09-13 14:40:00
SECRET
Embassy Vienna
Cable title:
(S) IRAN'S REFAH BANK CONSIDERING A VIENNA BRANCH
how-toVZCZCXYZ0031 OO RUEHWEB DE RUEHVI #2407 2561440 ZNY SSSSS ZZH O 131440Z SEP 07 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC IMMEDIATE 8567 INFO RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0400 RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
S E C R E T VIENNA 002407
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/13/2017
TAGS: EFIN PREL AU IR
SUBJECT: (S) IRAN'S REFAH BANK CONSIDERING A VIENNA BRANCH
REF: 08/31/07 TRICK-NELSON EMAIL
Classified By: Acting DCM Dean Yap for reasons 1.4 (b) and (d).
S E C R E T VIENNA 002407
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/13/2017
TAGS: EFIN PREL AU IR
SUBJECT: (S) IRAN'S REFAH BANK CONSIDERING A VIENNA BRANCH
REF: 08/31/07 TRICK-NELSON EMAIL
Classified By: Acting DCM Dean Yap for reasons 1.4 (b) and (d).
1. (S) On September 12, EconUnit Chief met with Kurt Pribil,
the Financial Market Authority's (FMA) Executive Director and
FMA Board Member Bernd Traexler to discuss Bank Refah's
interest in establishing a branch office in Vienna. Traexler
said that he and other FMA officials met with a Bank Refah
delegation on September 7. Traexler characterized Bank
Refah's interest as "exploratory," as the bank had not yet
submitted an application for a bank license. According to
Traexler, Bank Refah emphasized that other Iranian banks
already had established branches in the United Kingdom,
Germany, and Austria; Refah argued that it simply wanted to
enter the European market.
2. (S) Traexler said that the FMA could not a priori deny
Bank Refah a license. However, Traexler stressed that,
should the FMA received a formal application, it would submit
the Iranian bank to a rigorous due diligence process. Bank
Refah, in Traexler's view, must overcome several obstacles to
obtain a license: Refah would have to provide a comprehensive
overview of its ownership structure; it would have to provide
details on the businesses/sectors for which it would provide
services; and it would have to submit a business plan that
indicated a reasonable outlook for earnings. Pribil added
that the FMA would also consider the relationship between it
and the Iranian financial regulatory entities, which, at the
moment, was non-existent. Most importantly, Bank Refah would
need to demonstrate that there were substantial business
opportunities for it in Austria. Traexler said the FMA had
made all of these points to the visiting Bank Refah
officials.
3. (S) EconUnit Chief thanked Traexler and Pribil for their
heads-up on Bank Refah's interest in establishing a branch in
Austria. EconUnit Chief warned that, as international
sanctions against Iran tighten, the Tehran regime is seeking
to employ non-sanctioned financial entities to pursue its
proliferation agenda. In this context, the USG had concerns
that Iran would use Bank Refah's accounts for
proliferation-related activities (ref email). Traexler
promised to keep the embassy informed of developments related
to Bank Refah.
McCaw
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/13/2017
TAGS: EFIN PREL AU IR
SUBJECT: (S) IRAN'S REFAH BANK CONSIDERING A VIENNA BRANCH
REF: 08/31/07 TRICK-NELSON EMAIL
Classified By: Acting DCM Dean Yap for reasons 1.4 (b) and (d).
1. (S) On September 12, EconUnit Chief met with Kurt Pribil,
the Financial Market Authority's (FMA) Executive Director and
FMA Board Member Bernd Traexler to discuss Bank Refah's
interest in establishing a branch office in Vienna. Traexler
said that he and other FMA officials met with a Bank Refah
delegation on September 7. Traexler characterized Bank
Refah's interest as "exploratory," as the bank had not yet
submitted an application for a bank license. According to
Traexler, Bank Refah emphasized that other Iranian banks
already had established branches in the United Kingdom,
Germany, and Austria; Refah argued that it simply wanted to
enter the European market.
2. (S) Traexler said that the FMA could not a priori deny
Bank Refah a license. However, Traexler stressed that,
should the FMA received a formal application, it would submit
the Iranian bank to a rigorous due diligence process. Bank
Refah, in Traexler's view, must overcome several obstacles to
obtain a license: Refah would have to provide a comprehensive
overview of its ownership structure; it would have to provide
details on the businesses/sectors for which it would provide
services; and it would have to submit a business plan that
indicated a reasonable outlook for earnings. Pribil added
that the FMA would also consider the relationship between it
and the Iranian financial regulatory entities, which, at the
moment, was non-existent. Most importantly, Bank Refah would
need to demonstrate that there were substantial business
opportunities for it in Austria. Traexler said the FMA had
made all of these points to the visiting Bank Refah
officials.
3. (S) EconUnit Chief thanked Traexler and Pribil for their
heads-up on Bank Refah's interest in establishing a branch in
Austria. EconUnit Chief warned that, as international
sanctions against Iran tighten, the Tehran regime is seeking
to employ non-sanctioned financial entities to pursue its
proliferation agenda. In this context, the USG had concerns
that Iran would use Bank Refah's accounts for
proliferation-related activities (ref email). Traexler
promised to keep the embassy informed of developments related
to Bank Refah.
McCaw