SEOUL RESPONSE: IRAN'S USE OF BANK MELLAT FOR

S E C R E T SEOUL 000650 SIPDIS SIPDIS STATE FOR ISN - NEW & CHALMERS, T, NEA, IO/PSC, AND EAP/K TREASURY FOR OFAC E.O. 12958: DECL: 04/01/2018 TAGS: IR KNNP PARM PREL KS SUBJECT: SEOUL RESPONSE: IRAN'S USE OF BANK MELLAT FOR PROLIFERATION ACTIVITIES REF: STATE 30247 Classified By: EMIN ANDREW J. QUINN FOR REASONS 1.4 (B&D). ¶1. (S) On April 1, Ministry of Foreign Affairs and Trade (MOFAT) Disarmament and Non-proliferation Division Director Lee Jang-kuen thanked Econoff for the detailed, comprehensive demarche/non-paper outlining Bank Mellat's proliferation activities in Seoul (reftel). He reaffirmed the ROKG's commitment to complete its ongoing investigation into Mellat by the end of April. 2, (S) Having reviewed the non-paper before the meeting, Lee observed that it did not identify any questionable Mellat activities after November 2007. He said this appears to reflect both the significant decline in Bank Mellat's activities in Seoul and the extreme caution that the local banking community attaches to doing business with Mellat, following U/S Levey's mid-November visit To Seoul. Lee added several ROKG agencies are now engaged in the Mellat investigation, and all had taken note of the USG's serious concerns about Mellat. VERSHBOW