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IdentifierCreatedClassificationOrigin
08CANBERRA301 2008-03-27 05:54:00 CONFIDENTIAL Embassy Canberra
Cable title:  

AUSTRALIA'S IMPLEMENTATION OF FINANCIAL PROVISIONS

Tags:   ETRD EFIN ETTC PARM KNNP MNUC AS 
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VZCZCXRO5723
PP RUEHBC RUEHDE RUEHDIR RUEHKUK
DE RUEHBY #0301 0870554
ZNY CCCCC ZZH
P 270554Z MAR 08
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC PRIORITY 9285
INFO RUCNIRA/IRAN COLLECTIVE PRIORITY
RUEHBN/AMCONSUL MELBOURNE PRIORITY 5116
RUEHPT/AMCONSUL PERTH PRIORITY 3399
RUEHDN/AMCONSUL SYDNEY PRIORITY 3305
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
					  C O N F I D E N T I A L CANBERRA 000301 

SIPDIS

SIPDIS

STATE FOR ISN/CPI (M.NEW AND J.CHALMERS), NEA, EAP AND T

E.O. 12958: DECL: 03/27/2018
TAGS: ETRD EFIN ETTC PARM KNNP MNUC AS
SUBJECT: AUSTRALIA'S IMPLEMENTATION OF FINANCIAL PROVISIONS
OF UNSCR 1803

REF: A. STATE 29096


B. STATE 29464

Classified By: Political Counselor James F. Cole for reasons 1.4 (b) an
d (d).

SUMMARY
-------


1. (C) Australia recently completed updating laws and
regulations designed to facilitate its implementation of
financial and other provisions of Iran-related Security
Council resolutions, including UNSCR 1803. Australian banks
are fully compliant with the measures, which entered into
force on March 24, according to the Department of Foreign
Affairs and Trade's (DFAT) Legal Branch. Because Australian
banks can be penalized for transactions involving not only
designated Iranian individuals and entities, but also other
entities owned, controlled or directed by such designees,
DFAT would welcome U.S. assistance in identifying such second
tier or subsidiary entities. (Please see action request at
para 5 below.) Australia's implementation of dual use items
provisions of UNSCR 1803 (Ref B) is reported septel. End
summary.



2. (C) Poloff presented Ref A points and non-papers to Peter
Scott, Director for Sanctions and Transnational Crime,
International Legal Branch, and to Valerie Grey, Director for
Arms Control, DFAT, on March 25. On March 27, Scott briefed
us on updates to Australian legal instruments and regulations
that came into effect on March 24 intended to strengthen and
facilitate implementation of UNSC resolution sanctions,
including UNSCR 1803, relating to Iran.



3. (SBU) Noting the changes were mostly procedural rather
than substantive, Scott traced changes to Australian laws,
including the International Trade Integrity Act 2007, that
amended Australia's Charter of the United Nations Act 1945 by
more clearly defining terms and powers of the Minister to
designate Commonwealth (of Australia) entities and specify
provisions of Commonwealth laws as UN sanction enforcement
law. These were given further definition and force by
Foreign Minister Smith's March 19 Charter of the United
Nations (UN Sanction Enforcement Law) Declaration 2008, and
Governor-General Jeffery's March 20 issuance of the Charter
of the United Nations (Sanctions - Iran) Regulations 2008,
which updated and replaced the previous year's Iran sanctions
regulations. (Full text of the latter declarations are
available on the Federal Register of Legislative Instruments
at www.frli.gov.au.)



4. (C) Scott said Australian banks and other financial
institutions were in full compliance with the measures. Some
banks had raised concerns about their liability under the
revised laws and regulations that prohibit dealings not only
with designated individuals and entities, but also with "any
person acting on behalf of or at the direction of" a
designated person or entity, or "an entity owned or
controlled by" a designated person or entity. Unless the
Australian bank could successfully demonstrate it had
exercised due diligence to prevent dealings with prohibited
subsidary financial institutions, it could be subject to
substantial financial penalties. Scott asked if there was
any help we could provide to assist the banks in identifying
such subsidiary entities.



5. (C) ACTION REQUESTED: Embassy would appreciate whatever
assistance the State and Treasury can provide in indentifying
persons or entities controlled or acting on behalf of
designated Iranian banks and financial institutions.
Qdesignated Iranian banks and financial institutions.

CLUNE