Identifier
Created
Classification
Origin
08VALLETTA132
2008-04-03 15:41:00
SECRET
Embassy Valletta
Cable title:
MALTA TO PREVENT UK-BASED IRANIAN BANKS FROM
how-toVZCZCXRO2525 RR RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHVT #0132 0941541 ZNY SSSSS ZZH R 031541Z APR 08 FM AMEMBASSY VALLETTA TO RUEHC/SECSTATE WASHDC 1469 INFO RUCNIRA/IRAN COLLECTIVE RUEHLO/AMEMBASSY LONDON 0115
S E C R E T VALLETTA 000132
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/01/2018
TAGS: KNNP EFIN PARM PGOV ETRD MT
SUBJECT: MALTA TO PREVENT UK-BASED IRANIAN BANKS FROM
ACCESSING MALTA'S EURO PAYMENT SYSTEM
REF: A. SECSTATE 29855
B. VALLETTA 89
Classified By: DCM Jason Davis for reasons 1.4 (b) and (d).
S E C R E T VALLETTA 000132
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/01/2018
TAGS: KNNP EFIN PARM PGOV ETRD MT
SUBJECT: MALTA TO PREVENT UK-BASED IRANIAN BANKS FROM
ACCESSING MALTA'S EURO PAYMENT SYSTEM
REF: A. SECSTATE 29855
B. VALLETTA 89
Classified By: DCM Jason Davis for reasons 1.4 (b) and (d).
1. (C) In an April 1 meeting with new Maltese Finance
Minister Tonio Fenech, Ambassador drew on Ref A points to
urge Malta not to allow Iranian banks to use Malta's Euro
payment system. Bank Melli had been singled out in UNSCR 1803
as an entity of particular concern, the Ambassador pointed
out, and both banks had been designated by the U.S. under
E.O. 13382.
2. (C) Fenech said the Malta's Central Bank and the MFSA
(Malta Financial Services Authority) were "unhappy" about the
Iranian attempt, and had immediately looked for ways to
"block it" but that there appeared to be no clear "legal
mechanism" for doing so since there seemed to be no EU
sanctions on the banks in question. That said, "we are
definitely blocking it, and will continue to do so," Fenech
said. Malta's FIU was currently "investigating" the Iranian
request, and various other interim measures would be employed
to make certain that the transactions did not occur. There
was some concern that the Iranian banks might "take us to
court" to force action, but this did not seem likely.
3. (C) MinFinance Permanent Secretary Alan Caruana, who also
attended the meeting, informed the Embassy earlier that Malta
had issued two legal notices to the financial community,
Legal Notice 14: United Nations Sanctions Iran Regulations,
2007, and Legal Notice 116: United Nations Iran Further
Sanctions Regulations, 2007. These notices provide, inter
alia, for the freezing of "any funds, other financial assets
and economic resources which are in Malta on or after the
23rd of December 2006 and that are owned or controlled
directly or indirectly by the persons or entities designated
(by the UN for proliferation-sensitive nuclear activities or
the development of nuclear weapon delivery systems) or by
persons or entities acting on their behalf or at their
direction, or by entities controlled by them." The
monitoring of these sanctions is carried out by the Sanctions
Monitoring Board located at the Economic and European Affairs
Division of the Ministry of Foreign Affairs.
4. (C) Ambassador informed Minister Fenech that Treasury U/S
Levey would be visiting Malta in two weeks' time, and would
be seeking a meeting with the Finance Minister and others.
Borg said he welcomed the visit and looked forward to meeting
Undersecretary Levey.
BORDONARO
SIPDIS
SIPDIS
E.O. 12958: DECL: 04/01/2018
TAGS: KNNP EFIN PARM PGOV ETRD MT
SUBJECT: MALTA TO PREVENT UK-BASED IRANIAN BANKS FROM
ACCESSING MALTA'S EURO PAYMENT SYSTEM
REF: A. SECSTATE 29855
B. VALLETTA 89
Classified By: DCM Jason Davis for reasons 1.4 (b) and (d).
1. (C) In an April 1 meeting with new Maltese Finance
Minister Tonio Fenech, Ambassador drew on Ref A points to
urge Malta not to allow Iranian banks to use Malta's Euro
payment system. Bank Melli had been singled out in UNSCR 1803
as an entity of particular concern, the Ambassador pointed
out, and both banks had been designated by the U.S. under
E.O. 13382.
2. (C) Fenech said the Malta's Central Bank and the MFSA
(Malta Financial Services Authority) were "unhappy" about the
Iranian attempt, and had immediately looked for ways to
"block it" but that there appeared to be no clear "legal
mechanism" for doing so since there seemed to be no EU
sanctions on the banks in question. That said, "we are
definitely blocking it, and will continue to do so," Fenech
said. Malta's FIU was currently "investigating" the Iranian
request, and various other interim measures would be employed
to make certain that the transactions did not occur. There
was some concern that the Iranian banks might "take us to
court" to force action, but this did not seem likely.
3. (C) MinFinance Permanent Secretary Alan Caruana, who also
attended the meeting, informed the Embassy earlier that Malta
had issued two legal notices to the financial community,
Legal Notice 14: United Nations Sanctions Iran Regulations,
2007, and Legal Notice 116: United Nations Iran Further
Sanctions Regulations, 2007. These notices provide, inter
alia, for the freezing of "any funds, other financial assets
and economic resources which are in Malta on or after the
23rd of December 2006 and that are owned or controlled
directly or indirectly by the persons or entities designated
(by the UN for proliferation-sensitive nuclear activities or
the development of nuclear weapon delivery systems) or by
persons or entities acting on their behalf or at their
direction, or by entities controlled by them." The
monitoring of these sanctions is carried out by the Sanctions
Monitoring Board located at the Economic and European Affairs
Division of the Ministry of Foreign Affairs.
4. (C) Ambassador informed Minister Fenech that Treasury U/S
Levey would be visiting Malta in two weeks' time, and would
be seeking a meeting with the Finance Minister and others.
Borg said he welcomed the visit and looked forward to meeting
Undersecretary Levey.
BORDONARO