DISSEMINATION OF INFORMATION ON IRANIAN BANK

C O N F I D E N T I A L SECTION 01 OF 04 STATE 074750 SIPDIS E.O. 12958: DECL: 07/11/2018 TAGS: IO ISN NEA IR TREAS SUBJECT: DISSEMINATION OF INFORMATION ON IRANIAN BANK BRANCHES AND SUBSIDIARIES REF: A. STATE 29398 ¶B. STATE 37414 Classified By: IO Acting A/S Brian Hook, for reasons 1.4 (b) and (d). ¶1. (U) This is an action request. Please see paragraph 3. -------------- SUMMARY -------------- ¶2. (C) The United States, France and the United Kingdom will jointly, through their respective UN missions, provide information to the UNSC President and Chairman of the Iran Sanctions Committee on Iranian bank branches and subsidiaries, in order to facilitate action consistent with UNSCR 1803's call in paragraph 10 for all States to exercise vigilance over the activities of financial institutions in their territories with all banks domiciled in Iran, in particular with Bank Melli and Bank Saderat, and their branches and subsidiaries abroad. This information is taken from the U.S. Treasury Department Financial Crimes Enforcement Network (FinCEN) advisory issued on March 20, ¶2008. Washington previously requested that Mission present the FinCEN advisory (Ref A) and additional information on Iranian banks (Ref B) to the UNSC Iran Sanctions Committee. -------------- OBJECTIVES -------------- ¶3. (C) Department requests Mission work with UKUN and France UN to achieve the following objectives: -- Submit a letter from the U.S., France, and UK PermReps to the President of the U.N. Security Council to request the information on Iranian bank branches and subsidiaries in paragraph 5 be circulated as an official document of the Council. -- Submit a letter from the U.S., France, and UK PermReps to the Chairman of the Iran Sanctions Committee to request the information on Iranian bank branches and subsidiaries in paragraph 5 be provided to all UN Member States. -------------- DRAFT TEXT OF LETTERS -------------- ¶4. (C) Begin draft letter to UNSC President (Appropriate opening), (Any appropriate opening language) In support of the Council's call in UNSCR 1803 paragraph 10 for all States to exercise vigilance over the activities of financial institutions in their territories with banks domiciled in Iran, in particular with Bank Melli and Bank Saderat, and their branches and subsidiaries abroad, we are providing information on Iranian bank branches and subsidiaries. We would like to request that this information be circulated as an official document of the Council. (Appropriate closing) Ambassador Zalmay Khalilzad U.S. Mission to the United Nations UK Ambassador UK Mission to the United Nations French Ambassador French Mission to the United Nations (C) BEGIN DRAFT LETTER TO THE UNSC IRAN SANCTIONS COMMITTEE CHAIRMAN (Appropriate opening), (Any appropriate opening language) In support of the call in UNSCR 1803 paragraph 10 for all States to exercise vigilance over the activities of financial institutions in their territories with banks domiciled in Iran, in particular with Bank Melli and Bank Saderat, and their branches and subsidiaries abroad, we are providing STATE 00074750 002 OF 004 information on Iranian bank branches and subsidiaries. We would like to request that this information be disseminated to all Member States. (Appropriate closing) Ambassador Zalmay Khalilzad U.S. Mission to the United Nations UK Ambassador UK Mission to the United Nations French Ambassador French Mission to the United Nations -------------- -------------- INFORMATION ON IRAN BANK BRANCHES AND SUBSIDIARIES -------------- -------------- ¶5. (U) On March 3, 2008, the United Nations Security Council adopted Resolution 1803 (UNSCR 1803),which called on all states to exercise vigilance over activities of financial institutions in their territories with all banks domiciled in Iran, in particular with Bank Melli and Bank Saderat, and their branches and subsidiaries abroad. Deficiencies in Iran's anti-money laundering and combating the financing of terrorism (AML/CFT) regime are exacerbated by the Government of Iran's continued attempts to conduct prohibited proliferation related activity and terrorist financing. Through state-owned banks, the Government of Iran disguises its involvement in proliferation and terrorism activities through an array of deceptive practices specifically designed to evade detection. The Central Bank of Iran and Iranian commercial banks have requested that their names be removed from global transactions in order to make it more difficult for intermediary financial institutions to determine the true parties in the transaction. They have also continued to provide financial services to Iranian entities designated by the UN Security Council in its Resolutions 1737 and 1747. It is particularly concerning that the Central Bank of Iran may be facilitating transactions for sanctioned Iranian banks. UNSCR 1803 calls on member states to exercise vigilance over the activities of financial institutions in their territories with all banks domiciled in Iran, and their branches and subsidiaries abroad. Further, all financial institutions should take into account the risk arising from the deficiencies in Iran's AML/CFT regime, as well as all applicable international sanctions programs, with regard to any possible transactions with the following Iranian institutions: AGRICULTURAL BANK (a.k.a. BANK KESHAVARZI) Tehran, Ira) AGRICULTURAL COOPERATIVE BANK OF IRAN (a.k.a. BANK TAAVON KESHAVARZI IRAN) Tehran, Iran AGRICULTURAL DEVELOPMENT BANK OF IRAN (a.k.a. BANK JOSIAIYI KESHAHVARZI) Tehran, Iran ARIAN BANK (a.k.a. ARYAN BANK) Kabul, Afghanistan (Note: According to open source information on the international banking industry, Arian Bank is a joint venture between Iran's Bank Melli and Bank Saderat.) BANCO INTERNACIONAL DE DESARROLLO SA Caracas, Venezuela (Note: According to open source information, Banco Internacional de Desarrollo SA is a branch of the Export Development Bank of Iran (EDBI).) BANK KARGOSHAEE Tehran, Iran BANK MASKAN (a.k.a. HOUSING BANK (of Iran)) Tehran, Iran BANK MELLAT Tehran, Iran BANK MELLAT Seoul, South Korea BANK MELLAT Ankara, Istanbul, Izmir, Turkey BANK MELLI IRAN Tehran, Iran BANK MELLI IRAN Paris, France BANK MELLI IRAN Hamburg, Germany BANK MELLI IRAN Central, Hong Kong BANK MELLI IRAN Baghdad, Iraq BANK MELLI IRAN Muscat, Oman BANK MELLI IRAN Al Ain, Deira, Dubai City, Fujairah, Ras al-Khaimah, and Sharjah, United Arab Emirates BANK MELLI IRAN ZAO Moscow, Russia BANK OF INDUSTRY AND MINE (of Iran) (a.k.a. BANK SANAD VA MADAN) Tehran, Iran BANK REFAH (f.k.a. WORKERS WELFARE BANK, f.k.a. BANK REFAH KARGARAN) Tehran, Iran BANK SADERAT IRAN Tehran, Iran BANK SADERAT Paris, France BANK SADERAT Frankfurt, Hamburg, Germany BANK SADERAT Athens, Greece BANK SADERAT Baalbak, Beirut, Saida, Lebanon BANK SADERAT Muscat, Oman STATE 00074750 003 OF 004 BANK SADERAT Doha, Qatar BANK SADERAT Ashgabat, Turkmenistan BANK SADERAT Abu Dhabi, Ajman, Al Ain, Dubai City, Sharjah, United Arab Emirates BANK SADERAT PLC London, United Kingdom BANK SADERAT TASHKENT Tashkent, Uzbekistan BANK SEPAH Tehran, Iran BANK SEPAH Paris, France BANK SEPAH Frankfurt, Germany BANK SEPAH Rome, Italy BANK SEPAH INTERNATIONAL PLC London, United Kingdom BANK TEJARAT Tehran, Iran BANK TEJARAT Paris, France BANK TEJARAT Dusanbe, Tajikistan THE CENTRAL BANK OF IRAN (a.k.a. BANK MARKAZI JOMHOURI ISLAMI IRAN) Tehran, Iran EUROPAEISCH-IRANISCHE HANDELSBANK AG (f.k.a. DEUTSCH-IRANISCHE HANDELSBANK AG) Hamburg, Germany (Note: According to available open source information on international businesses, the Iranian Bank of Industry & Mines owns more than 50% of EIH Bank, Bank Mellat owns more than 25% and Bank Tejerat owns less than 25%. There are two branches also located in Iran.) EUROPAEISCH-IRANISCHE HANDELSBANK AG (f.k.a. DEUTSCH-IRANISCHE HANDELSBANK AG) Tehran, Iran EXPORT DEVELOPMENT BANK OF IRAN (a.k.a. BANK TOWSEH SADERAT IRAN) Tehran, Iran FUTURE BANK B.S.C. Manama, Bahrain (Note: According to its corporate documents, Future Bank BSC is controlled by Iran's Bank Melli, while Iran's Bank Saderat also holds a stake in the bank. Collectively, banks domiciled in Iran own approximately 66% of this bank, which qualifies this bank, for purposes of paragraph 10 of UNSCR 1803, as a subsidiary of banks domiciled in Iran.) IRAN OVERSEAS INVESTMENT BANK PLC (a.k.a. IRAN OVERSEAS INVESTMENT CORPORATION LIMITED) London, United Kingdom (Note: Now known as Bank Saderat PLC. According to open source information, Iran Overseas Investment Bank PLC (n.k.a. Bank Saderat PLC) is a wholly owned subsidiary of Iran's Bank Saderat.) KARGOZARI BANK TEJARAT Tehran, Iran MELLAT BANK DB AOZT (a.k.a. MELLAT BANK S/B CJSC) Yerevan, Armenia MELLAT BANK S/B CJSC (a.k.a. MELLAT BANK DB AOZT) Yerevan, Armenia MELLI BANK PLC. London, United Kingdom PERSIA INTERNATIONAL BANK PLC. London, United Kingdom (Note: According to the 2006/2007 Annual Report of Persia International Bank PLC, Iran's Bank Mellat owns 60% and Iran's Bank Tejarat owns the remaining 40%, making this bank a subsidiary of a bank domiciled in Iran. Open source information shows that Bank Melli and other Iranian banks list the Persia International Bank PLC as a correspondent bank, while Bank Melli additionally lists the Persia International Bank as their only settlement bank for U.S. dollar settlements.) PERSIA INTERNATIONAL BANK PLC. Dubai City, United Arab Emirates (Note: According to the 2006/2007 Annual Report of Persia International Bank PLC, this bank is a branch of the London-based Persia International Bank. It is therefore owned by Bank Mellat and Bank Tejarat, qualifying it, for purposes of paragraph 10 of UNSC resolution 1803, as a subsidiary of banks domiciled in Iran.) POST BANK OF IRAN Tehran, Iran (Note: According to open source information, Post Bank of Iran is a commercial government-owned bank, and is 100% owned by the Ministry of Information and Communications.) Privately Owned Iranian Financial Institutions BANK PASARGAD Tehran, Iran EN BANK PJSC (a.k.a. EGHTESAD-E-NOVIN BANK) Tehran, Iran KARAFARIN BANK Tehran, Iran PARSIAN BANK Tehran, Iran SAMAN BANK CORPORATION Tehran, Iran BANK SARMAYE Tehran, Iran -------------- REPORTING DEADLINE -------------- ¶6. (U) Mission is requested to report on the responses to the letters after they are delivered, including any substantive discussions that take place. Please slug replies for ISN, IO, T, Treasury, and NEA/IR. Please include SIPDIS in all replies. -------------- POINT OF CONTACT -------------- ¶7. (U) Washington point of contact for follow-up is Jennifer STATE 00074750 004 OF 004 Chalmers, ISN/CPI, (202) 647-9715, chalmersja@STATE.SGOV.GOV. ¶8. (U) Department thanks the Mission for its assistance. RICE