IMPLEMENTATION OF UNSCR 1747 WITH RESPECT TO BANK

C O N F I D E N T I A L YEREVAN 000383 SIPDIS SIPDIS DEPT FOR EUR/CARC, EEB, ISN/CPI ARUGGIERO, NEA/IR SMISKO TREASURY FOR TFFC RLOEFFLER E.O. 12958: DECL: 03/30/2017 TAGS: EFIN PARM KNNP IR AM SUBJECT: IMPLEMENTATION OF UNSCR 1747 WITH RESPECT TO BANK SEPAH REF: A) STATE 40440 B) YEREVAN 362 Classified By: EconOff E. Pelletreau for reasons 1.4 (b,d). ¶1. (C) On March 30, Pol/Econ Chief and EconOff met with Armenian Financial Intelligence Unit (FIU) director Nerses Yeritsyan to discuss GOAM implementation of UNSCR 1747 (ref A). We mentioned that EUR DAS Bryza has raised our Iran concerns March 28 with President Kocharian and FM Oskanian (septel),and CDA Godfrey had done so with DFM Kirakossian (ref B),noting that the consistent GOAM message had been of Armenia's commitment to uphold all its obligations under UNSRCs. Yeritsyan affirmed his own commitment, and told us that the Central Bank Chairman had called him as soon as the resolution had passed to direct the FIU to take immediate steps to ensure Armenia was in full compliance. Yeritsayan said the FIU staff checked all names identified in UNSCR 1747 against the bank's central database of suspicious transactions and found no matches. He added that both domestic and international transactions involving Mellat Bank had remained stable, neither increasing nor decreasing since the passage of UNSCR 1741. ¶2. (C) Yeritsyan said, to ensure nothing fell through the cracks due to transliteration problems, he had instructed his analysts to conduct a name-by-name verification of its electronic database search. He committed to continuing the verification process within the Central Bank, posting the information in UNSCR 1747 on the Central Bank's website and advising the relevant Central Bank supervisor to pay special attention to Mellat Bank. He also said he would consider contacting the manager of Mellat Bank to remind them that Armenia "does not want any trouble" with the international community concerning banking relations with Iran. ¶3. (C) Post also raised this issue with Acting Head of the Americas Desk at the MFA Armen Yeganian who pledged to bring it to the attention of the Foreign Affairs Minister. We also foreshadowed the issue in an e-mail to Deputy Finance Minister David Avetissian, who was not immediately reachable, and will follow up with him and the Central Bank Chairman next week. GODFREY