DUTCH FINANCE MINISTRY ON UNSCR 1803

S E C R E T THE HAGUE 000299 SIPDIS SIPDIS STATE FOR ISN/CPI (MNEW, JCHALMERS) AND EUR/WE (TSMITH) STATE ALSO FOR EB/ESC/TFS, S/CT, EUR/PGI TREASURY FOR TFFC E.O. 12958: DECL: 03/28/2033 TAGS: EFIN EINV ETRD PARM PREL KNNP MNUC IR NL SUBJECT: DUTCH FINANCE MINISTRY ON UNSCR 1803 IMPLEMENTATION, EFFECT ON IRAN-RELATED BUSINESS REF: A. STATE 029098 ¶B. STATE 029096 Classified By: CDA Michael Gallagher, reasons 1.4 (b) and (d) ¶1. (U) Econoff delivered points, per refs A and B, on March 26 to Eric Ligthart, Policy Advisor Integrity Division, Ministry of Finance (MOF). Separately, Emboffs delivered ref B points to Foreign Ministry officials in the Terrorism and New Threats Unit and on the Iran desk. Ligthart's office is the conduit between MOF and De Nederlandsche Bank (Dutch central bank) on financial implementation of UNSCRs 1737, 1747, and 1803 and FATF guidance on Iran. ¶2. (S) Ligthart assured that the Dutch Government would continue to work with financial institutions to be vigilant over all Iran-related business. He said that Dutch banks already exercise a very high level of scrutiny over Iran transactions, beyond what the government has called for officially. For example, Ligthart said, Dutch financial institutions are only accepting from Bank Melli and Bank Saderat repayment of letters of credit (LCs) owed to Dutch companies. He added that if a Dutch company tries to establish a new commercial relationship with an Iranian entity, Dutch financial insitutions "will not touch it". ¶3. (S) Ligthart said that the implementation of financial restrictions on Iran is increasingly affecting Dutch commercial interests. MOF has received a number of approaches from established, reputable Dutch companies (e.g., consumer products and agricultural goods) asking how they can properly get paid for exports to Iran or get their money out of Iran. When companies approach MOF for assistance on such matters, Ligthart said that he can only jokingly advise them to try to get some oil as compensation. (Note: Ligthart said he has heard rumors of barter arrangements being used to circumvent banking restrictions. End note.) He said that these company complaints have not yet risen to a political level -- i.e., no member of parliament has raised the issue -- but might in the future. Ligthart also noted some Dutch concern over the humanitarian situation that would develop if Bank Markazi (Iran's central bank) is designated, which, he added, would effectively create an economic embargo of Iran. Gallagher