USG QUESTIONS ON UAE JANUARY 31 NOTICE ON BANK

UNCLAS STATE 014956 SIPDIS SIPDIS E.O. 12958: N/A TAGS: KNNP IR PREL PARM XF ZP AE SUBJECT: USG QUESTIONS ON UAE JANUARY 31 NOTICE ON BANK SEPAH REF: A) NOTE VERBALE 31 JANUARY 2007 ¶1. (U) This is an action request. Please see paragraph four. -------------- SUMMARY -------------- ¶2. (U) On 31 January, the UAE notified the UNSCR 1737 Sanctions Committee of its intention to authorize-under paragraph 15 of UNSCR 1737-payments due under contracts with Bank Sepah entered into prior to the listing of Bank Sepah in Annex I of UNSCR 1747. Washington would like to request that the UAE provide more information to the Committee and the U.S. regarding these payments and the underlying contracts in order to confirm that the authorization of such payments is fully consistent with the terms of paragraph 15 of UNSCR 1737. ¶3. (U) In accordance with paragraph 15 of UNSCR 1737 and paragraph 4 of 1747, UAE may authorize these payments as early as February 14. We wish to immediately convey our request to the UAE, prior to the payment of any funds, and ask the UAE to delay authorization or withdraw its notification until more information is provided on the origin of money used to process these payments. -------------- OBJECTIVES -------------- ¶4. (U) Washington requests Mission approach appropriate Emirati officials to discuss this issue drawing from paragraphs two and three and the objectives outlined below. -- Inquire about the dates of the issuances of the letters of credit to ensure that they were agreed before the listing of Bank Sepah. -- Ask for additional details - prior to the payment of any funds - about the nature of the underlying goods to ensure that the letters of credit are not related to any of the prohibited items, materials, equipment, goods, technologies, or related assistance that could be involved in proliferation-related activities, as set out in resolution ¶1737. -- Request information about the parties (including the names and locations) involved in these transactions to determine whether they have links to any UNSCR-sanctioned entities or individuals. -- Reiterate USG concerns regarding any financial transactions with the UAE-based branches of Bank Melli and Bank Saderat, encourage the UAEG to apply enhanced vigilance in monitoring the activities of these banks, specifically with UNSCR 1747/EO 13382 designated entity Bank Sepah. -- Request that the UAE confirm that the funds to be unfrozen and paid to the creditors are currently within the UAE and, if not, to indicate the source of the funds. -------------- REPORTING DEADLINE -------------- ¶5. (U) Mission should report results within seven (7) business days of receipt of this cable. Please slug replies for ISN, IO, T, TREASURY, and NEA/IR. Please include SIPDIS in all replies. -------------- POINT OF CONTACT -------------- ¶6. (U) Washington point of contact for follow-up information is Kevin McGeehan, ISN/CPI, (202) 647-5408, McGeehanKJ@state.sgov.gov. ¶7. (U) Department thanks Post for its assistance. RICE