Identifier
Created
Classification
Origin
08CAIRO996
2008-05-15 12:54:00
CONFIDENTIAL
Embassy Cairo
Cable title:
CENTRAL BANK OF EGYPT WARNS FINANCIAL INSTITUTIONS
how-toVZCZCXRO5169 RR RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHEG #0996 1361254 ZNY CCCCC ZZH R 151254Z MAY 08 FM AMEMBASSY CAIRO TO RUEHC/SECSTATE WASHDC 9268 INFO RUCNIRA/IRAN COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L CAIRO 000996
SIPDIS
DEPT FOR ISN/CPI NEW, T, NEA
TREASURY FOR GLASER
E.O. 12958: DECL: 05/15/2018
TAGS: ECON EG ETRD IR PGOV EINV
SUBJECT: CENTRAL BANK OF EGYPT WARNS FINANCIAL INSTITUTIONS
OF IRANIAN BANKS
REF: STATE 029096
Classified By: Minister Counselor William R. Stewart for reason 1.4(b).
C O N F I D E N T I A L CAIRO 000996
SIPDIS
DEPT FOR ISN/CPI NEW, T, NEA
TREASURY FOR GLASER
E.O. 12958: DECL: 05/15/2018
TAGS: ECON EG ETRD IR PGOV EINV
SUBJECT: CENTRAL BANK OF EGYPT WARNS FINANCIAL INSTITUTIONS
OF IRANIAN BANKS
REF: STATE 029096
Classified By: Minister Counselor William R. Stewart for reason 1.4(b).
1. (C) Per reftel, Post delivered non-paper to relevant
Egyptian authorities regarding UN Security Council Resolution
1803 regarding Iran, the FATF advisory on Iran, and we urged
Egyptian authorities to warn their financial institutions to
step up vigilance on all activities with any bank domiciled
in Iran. Several months after the passage of the UNSCR 1803
and our delivery of the non-paper, several local press
outlets this week have run stories about steps taken by the
Egyptian Government.
2. (SBU) The daily financial paper Al-Mal wrote a front page
story which indicated that the Central Bank had warned banks
on lending or interacting with Iranian banks. According to
Al-Mal, the Central Bank requested banks to be careful of
transactions with Bank Melli or Saderat Bank. Al-Mal noted
that trade facilities, credit facilities guarantees, and
insurance were to be scrutinized. The paper noted that local
bankers see this directive as obligatory for state-owned
banks, while they are more flexible for private and foreign
banks. An economic blog cites the paper al-Mesryoon saying
that the action is in reaction to the events in Lebanon.
Comment: We do not believe the crisis in Lebanon to be the
impetus for this action, but rather the UNSCR and the FATF
advisory. End Comment.
3. (C) We spoke with Dr. Samir el-Shehad, Executive Director
of the Egyptian Money Laundering Combating Unit, who
confirmed that the CBE had sent letters warning about doing
business with Iran to all financial institutions. He said he
could not share the letter, but noted that the CBE took the
action consistent with the UNSCR. He noted that the article
was incorrect in speculating that public and private
financial institutions would be treated differently, but
rather that all institutions were advised to use increased
vigilance in any Iran-related business.
SCOBEY
SIPDIS
DEPT FOR ISN/CPI NEW, T, NEA
TREASURY FOR GLASER
E.O. 12958: DECL: 05/15/2018
TAGS: ECON EG ETRD IR PGOV EINV
SUBJECT: CENTRAL BANK OF EGYPT WARNS FINANCIAL INSTITUTIONS
OF IRANIAN BANKS
REF: STATE 029096
Classified By: Minister Counselor William R. Stewart for reason 1.4(b).
1. (C) Per reftel, Post delivered non-paper to relevant
Egyptian authorities regarding UN Security Council Resolution
1803 regarding Iran, the FATF advisory on Iran, and we urged
Egyptian authorities to warn their financial institutions to
step up vigilance on all activities with any bank domiciled
in Iran. Several months after the passage of the UNSCR 1803
and our delivery of the non-paper, several local press
outlets this week have run stories about steps taken by the
Egyptian Government.
2. (SBU) The daily financial paper Al-Mal wrote a front page
story which indicated that the Central Bank had warned banks
on lending or interacting with Iranian banks. According to
Al-Mal, the Central Bank requested banks to be careful of
transactions with Bank Melli or Saderat Bank. Al-Mal noted
that trade facilities, credit facilities guarantees, and
insurance were to be scrutinized. The paper noted that local
bankers see this directive as obligatory for state-owned
banks, while they are more flexible for private and foreign
banks. An economic blog cites the paper al-Mesryoon saying
that the action is in reaction to the events in Lebanon.
Comment: We do not believe the crisis in Lebanon to be the
impetus for this action, but rather the UNSCR and the FATF
advisory. End Comment.
3. (C) We spoke with Dr. Samir el-Shehad, Executive Director
of the Egyptian Money Laundering Combating Unit, who
confirmed that the CBE had sent letters warning about doing
business with Iran to all financial institutions. He said he
could not share the letter, but noted that the CBE took the
action consistent with the UNSCR. He noted that the article
was incorrect in speculating that public and private
financial institutions would be treated differently, but
rather that all institutions were advised to use increased
vigilance in any Iran-related business.
SCOBEY