Identifier
Created
Classification
Origin
08HONGKONG564
2008-03-27 23:28:00
CONFIDENTIAL
Consulate Hong Kong
Cable title:
IMPLEMENTATION OF THE FINANCIAL PROVISIONS OF
how-toVZCZCXYZ0005 RR RUEHWEB DE RUEHHK #0564 0872328 ZNY CCCCC ZZH R 272328Z MAR 08 FM AMCONSUL HONG KONG TO RUEHC/SECSTATE WASHDC 4499 INFO RUEHBJ/AMEMBASSY BEIJING 2050 RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L HONG KONG 000564
SIPDIS
SIPDIS
STATE FOR EAP/CM, NEA, ISN, T; TREASURY FOR GLASER
E.O. 12958: DECL: 03/27/2018
TAGS: ECON EFIN ETRD PARM ETTC KNNP PREL CH
SUBJECT: IMPLEMENTATION OF THE FINANCIAL PROVISIONS OF
UNSCR 1803: HONG KONG RESPONSE
REF: A. SECSTATE 29096
B. 07 HONG KONG 2741
Classified By: E/P Section Chief Laurent Charbonnet, Reasons 1.4 (b/d)
C O N F I D E N T I A L HONG KONG 000564
SIPDIS
SIPDIS
STATE FOR EAP/CM, NEA, ISN, T; TREASURY FOR GLASER
E.O. 12958: DECL: 03/27/2018
TAGS: ECON EFIN ETRD PARM ETTC KNNP PREL CH
SUBJECT: IMPLEMENTATION OF THE FINANCIAL PROVISIONS OF
UNSCR 1803: HONG KONG RESPONSE
REF: A. SECSTATE 29096
B. 07 HONG KONG 2741
Classified By: E/P Section Chief Laurent Charbonnet, Reasons 1.4 (b/d)
1. (C) Post delivered reftel A talking points to the Hong
Kong Monetary Authority (HKMA) Executive Director for Banking
Supervision, Arthur Yuen, on March 27. Yuen confirmed Hong
Kong's commitment to supporting the requirements of all
United Nations Security Council resolutions on Iran. He
noted that Bank Melli (Hong Kong) operates as a branch of the
United Kingdom-based Bank Melli, which in turn is a
subsidiary of Bank Melli Iran. Bank Melli (Hong Kong) is the
only known Iranian-linked bank in Hong Kong. It's operations
are small and have consisted primarily non-Iranian entities'
business with Iran. HKMA began applying closer scrutiny to
Bank Melli operations many years ago and continues to do so.
2. (C) Yuen noted that HKMA issued circulars in October 2007
to Hong Kong-based financial institutions in response to the
U.S. Designation of Iranian Entities and FATF guidance on
Iran (reftel B). He promised to provide HKMA bank auditors
the list of Iranian banks and ask them to pay particular
attention to any transactions related to Iranian entities.
HKMA cannot legally mandate that Hong Kong financial
institutions enhance due diligence of suspected
Iranian-linked transactions, but he offered to consult with
the highest level of HKMA management on means to encourage
Hong Kong banks to require senior-level scrutiny for
transactions involving Iran. Yuen noted that Hong Kong
already has strong AML/CFT measures in place and a banking
culture that encourages due diligence and "know your
customer" practices. This is backed by regulations enforced
by the HKMA. HKMA will review the material provided in the
reftel non-paper and consider whether to issue additional
advisories to Hong Kong financial institutions regarding
business with Iranian entities.
Cunningham
SIPDIS
SIPDIS
STATE FOR EAP/CM, NEA, ISN, T; TREASURY FOR GLASER
E.O. 12958: DECL: 03/27/2018
TAGS: ECON EFIN ETRD PARM ETTC KNNP PREL CH
SUBJECT: IMPLEMENTATION OF THE FINANCIAL PROVISIONS OF
UNSCR 1803: HONG KONG RESPONSE
REF: A. SECSTATE 29096
B. 07 HONG KONG 2741
Classified By: E/P Section Chief Laurent Charbonnet, Reasons 1.4 (b/d)
1. (C) Post delivered reftel A talking points to the Hong
Kong Monetary Authority (HKMA) Executive Director for Banking
Supervision, Arthur Yuen, on March 27. Yuen confirmed Hong
Kong's commitment to supporting the requirements of all
United Nations Security Council resolutions on Iran. He
noted that Bank Melli (Hong Kong) operates as a branch of the
United Kingdom-based Bank Melli, which in turn is a
subsidiary of Bank Melli Iran. Bank Melli (Hong Kong) is the
only known Iranian-linked bank in Hong Kong. It's operations
are small and have consisted primarily non-Iranian entities'
business with Iran. HKMA began applying closer scrutiny to
Bank Melli operations many years ago and continues to do so.
2. (C) Yuen noted that HKMA issued circulars in October 2007
to Hong Kong-based financial institutions in response to the
U.S. Designation of Iranian Entities and FATF guidance on
Iran (reftel B). He promised to provide HKMA bank auditors
the list of Iranian banks and ask them to pay particular
attention to any transactions related to Iranian entities.
HKMA cannot legally mandate that Hong Kong financial
institutions enhance due diligence of suspected
Iranian-linked transactions, but he offered to consult with
the highest level of HKMA management on means to encourage
Hong Kong banks to require senior-level scrutiny for
transactions involving Iran. Yuen noted that Hong Kong
already has strong AML/CFT measures in place and a banking
culture that encourages due diligence and "know your
customer" practices. This is backed by regulations enforced
by the HKMA. HKMA will review the material provided in the
reftel non-paper and consider whether to issue additional
advisories to Hong Kong financial institutions regarding
business with Iranian entities.
Cunningham