LEVERAGING FATF STATEMENT ON IRAN: SWISS ARE

C O N F I D E N T I A L BERN 000570

SENSITIVE
SIPDIS

E.O. 12958: DECL: 11/05/2018
TAGS: PARM PREL EFIN KNNP SZ
SUBJECT: LEVERAGING FATF STATEMENT ON IRAN: SWISS ARE
ENGAGED

REF: STATE 115523

Classified By: PolCouns R.Rorvig for reasons 1.4(b) and (d).


1. (SBU) Econoff delivered message in reftel to Riccardo
Sansonetti, Head of International Finance and Monetary Policy
Division, Swiss Federal Department of Finance. Sansonetti
reported that he was in attendance at the FATF meeting the
week of October 13 and was aware of the declaration and
guidance. He stated that Switzerland has been engaged in
both addressing serious concerns of various countries as well
as taking a more active approach, such as providing technical
assistance to Turkmenistan this year.


2. (C) In regards to Iran, Sansonetti noted that the
Iranians have improved their technical capabilities. He said
that his Italian colleagues, who were involved with the
Iranian FIU visit to Italy, were impressed with the Iranians'
knowledge. However, in his opinion, Iran was taking the
minimum steps to keep Russia, China and South Africa on their
side to oppose any additional measures. It was these
countries' opposition that led FATF to phrase the October 16
statement in terms that did not place an obligation on any
country to take extra preventative measures. Sansonetti
reported that Switzerland has already taken preventative
measures. He confirmed that prior instructions were reissued
to ensure that all financial institutions (FIs) continued to
follow the required measures, which includes application of
high risk objectives and utilizing due diligence with any
Iran related transaction.


3. (C) Sansonetti addressed the 1803 guidance by stating
that Switzerland continues to maintain vigilance regarding
Iranian banks. There is no presence of Iranian banks in
Switzerland. But, given the fact that Iran has assets in
other countries, Switzerland in August 2008 created a
requirement that all FIs report any relations with the two
Iranian banks to the Swiss State Secretariat for Economic
Affairs (SECO). Sanctions are in place should the Swiss FIs
fail to meet this obligation. According to Sansonetti, this
requirement was initiated based on the 1803 target.
CONEWAY