Identifier
Created
Classification
Origin
07VIENNA2803
2007-11-15 09:33:00
SECRET
Embassy Vienna
Cable title:
TREASURY A/S O'BRIEN DISCUSSES BANK SEPAH WITH
how-toVZCZCXYZ0000 PP RUEHWEB DE RUEHVI #2803 3190933 ZNY SSSSS ZZH P 150933Z NOV 07 FM AMEMBASSY VIENNA TO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEHC/SECSTATE WASHDC PRIORITY 8971
S E C R E T VIENNA 002803
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/15/2017
TAGS: EFIN KNNP AU IR
SUBJECT: TREASURY A/S O'BRIEN DISCUSSES BANK SEPAH WITH
RAIFFEISEN BANK
Classified By: Economic-Political Counselor Dean Yap for reasons 1.4
(b) and (d)
S E C R E T VIENNA 002803
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/15/2017
TAGS: EFIN KNNP AU IR
SUBJECT: TREASURY A/S O'BRIEN DISCUSSES BANK SEPAH WITH
RAIFFEISEN BANK
Classified By: Economic-Political Counselor Dean Yap for reasons 1.4
(b) and (d)
1. (S) On November 6, Treasury A/S O'Brien met with Patrick
Butler, Chief Financial Officer of Raiffeisen Bank (RZB),and
Fritz Sommer, RZB General Counsel, to clarify RZB's written
response, following an October 20 meeting between Treasury
U/S Levey and Raiffeisen International CEO Herbert Stepic.
O'Brien reiterated that the USG remained concerned that
Iranian entities were stripping identification information
from financial transactions to conceal the true
beneficiaries. O'Brien emphasized that this practice put all
the financial institutions involved in the transaction chain
at risk, given Sepah's designation under UNSCR 1737. O'Brien
pointed to the recent FATF Statement and FINCEN Advisory,
which highlighted serious anti-money laundering deficiencies
in the Iranian financial system. Financial institutions
needed to be extremely cautious with their Iranian business.
2. (S) Butler said that he had been "stunned" to hear
allegations that RZB was assisting Sepah in disguising its
transactions. RZB, according to Butler, follows all UN, EU,
and Austrian laws regarding sanctioned individuals and firms.
Butler maintained that RZB had ceased all business with
Sepah following the UN designation. Butler said that he
would verify that RZB had not concealed Sepah's role in any
"licensed," as well as unlicensed transactions, as previously
indicated to Treasury. Butler asked the USG to share as much
information about the allegations as possible, so RZB could
investigate. However, Butler said he understood that the USG
might not be able to disclose all of the details of the
allegations. (Note: Following the meeting, Butler and Sommer
sent a written response to A/S O'Brien confirming that "also
no licensed transaction (within the UN sanctions as enacted
by EU Directive No. 423/2007 dated April 19, 2007) with Bank
Sepah has been carried out" by the bank. End Note)
3. (S) According to Butler, RZB would continue to serve only
"long-standing, established customers" doing business in
Iran. RZB's business in Iran consisted overwhelmingly of
letters of credits and guarantee loans. RZB "was not
proactively seeking news business in Iran." Butler added
that RZB, because of its significant operations in the
Balkans and Eastern Europe, had put a sizable effort into
developing a robust monitoring and compliance system.
4. (U) A/S O'Brien has cleared this message.
McCaw
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/15/2017
TAGS: EFIN KNNP AU IR
SUBJECT: TREASURY A/S O'BRIEN DISCUSSES BANK SEPAH WITH
RAIFFEISEN BANK
Classified By: Economic-Political Counselor Dean Yap for reasons 1.4
(b) and (d)
1. (S) On November 6, Treasury A/S O'Brien met with Patrick
Butler, Chief Financial Officer of Raiffeisen Bank (RZB),and
Fritz Sommer, RZB General Counsel, to clarify RZB's written
response, following an October 20 meeting between Treasury
U/S Levey and Raiffeisen International CEO Herbert Stepic.
O'Brien reiterated that the USG remained concerned that
Iranian entities were stripping identification information
from financial transactions to conceal the true
beneficiaries. O'Brien emphasized that this practice put all
the financial institutions involved in the transaction chain
at risk, given Sepah's designation under UNSCR 1737. O'Brien
pointed to the recent FATF Statement and FINCEN Advisory,
which highlighted serious anti-money laundering deficiencies
in the Iranian financial system. Financial institutions
needed to be extremely cautious with their Iranian business.
2. (S) Butler said that he had been "stunned" to hear
allegations that RZB was assisting Sepah in disguising its
transactions. RZB, according to Butler, follows all UN, EU,
and Austrian laws regarding sanctioned individuals and firms.
Butler maintained that RZB had ceased all business with
Sepah following the UN designation. Butler said that he
would verify that RZB had not concealed Sepah's role in any
"licensed," as well as unlicensed transactions, as previously
indicated to Treasury. Butler asked the USG to share as much
information about the allegations as possible, so RZB could
investigate. However, Butler said he understood that the USG
might not be able to disclose all of the details of the
allegations. (Note: Following the meeting, Butler and Sommer
sent a written response to A/S O'Brien confirming that "also
no licensed transaction (within the UN sanctions as enacted
by EU Directive No. 423/2007 dated April 19, 2007) with Bank
Sepah has been carried out" by the bank. End Note)
3. (S) According to Butler, RZB would continue to serve only
"long-standing, established customers" doing business in
Iran. RZB's business in Iran consisted overwhelmingly of
letters of credits and guarantee loans. RZB "was not
proactively seeking news business in Iran." Butler added
that RZB, because of its significant operations in the
Balkans and Eastern Europe, had put a sizable effort into
developing a robust monitoring and compliance system.
4. (U) A/S O'Brien has cleared this message.
McCaw