FINANCE VICE MINISTER LETTER ON IRAN SANCTIONS

C O N F I D E N T I A L MADRID 000486 SIPDIS SIPDIS STATE FOR EUR/WE AND EEB/ESC TREASURY FOR DO/W.LINDQUIST E.O. 12958: DECL: 04/30/2013 TAGS: EFIN KTFN SP IR SUBJECT: FINANCE VICE MINISTER LETTER ON IRAN SANCTIONS REF: MADRID 285 Classified By: CHARGE D'AFFAIRES HUGO LLORENS, FOR REASONS 1.4(B) AND ( D) ¶1. (C) As a followup to visiting Deputy Treasury Secretary Kimmitt's meeting with Spanish Secretary of State (vice minister) for Economy David Vegara on March 6 (reftel),the Ambassador wrote Vegara a letter about Spanish transactions with Iranian banks. Vegara has responded with the following letter: ¶2. (SBU) (begin text) Dear Mr. Aguirre: I want first to express my satisfaction for the meeting with U.S. Deputy Treasury Secretary Robert Kimmitt and the persons who accompanied him, which took place in a relaxed atmosphere but one that allowed the exchange of mutually interesting information. During the meeting, several topics came up, including international obligations with respect to Iran. In that sense, the Directorate General of the Treasury and Financial Policy is the competent authority in the matter of unfreezing funds as established in the regulation (EC) 423/2007 of the Council of April 19, 2007, on the adoption of restrictive measures against Iran, and for that reason that Directorate General receives applications from Spanish financial institutions for the unfreezing of funds from Bank Sepah. As for the information about Bank Saderat that you requested in your letter, I can inform you that we have warned all the financial institutions, through a communication to their associations, of the need to adopt measures of vigilance regarding all banks that are domiciled in Iran, and in particular, with regard to Banks Melli and Saderat, as established in Resolution 1803, approved by the Security Council in its 5848th session, celebrated March 3, 2008, and with respect to which Spain assumes its obligation for the carrying out of its requirements and especially those referring to the financial area. Attentively, David Vegara Figueras (end text) ¶3. (SBU) Comment: Vegara and other Spanish authorities emphasize to us that they are diligently carrying out all UNSC SANCTIONS against Iran. Post continues to stress to government and private sector contacts the need to monitor carefully any transactions with Iran, and we continue to discourage such transactions. End Comment. Llorens