AUSTRIAN RESPONSE: IMPLEMENTING THE FINANCIAL

S E C R E T VIENNA 000469

SIPDIS

SIPDIS

DEPARTMENT FOR ISN, T, NEA, AND EUR/AGS

E.O. 12958: DECL: 04/04/2018
TAGS: PARM PGOV PREL ECON EFIN EINV ETRD KNNP MNUC
AU, IR
SUBJECT: AUSTRIAN RESPONSE: IMPLEMENTING THE FINANCIAL
PROVISIONS OF UNSCR 1803 AND INFORMATION ON THE ACTIVITIES
OF BANK MELLI, BANK MELLAT, AND BANK SADERAT

REF: A) STATE 29098 B) STATE 29096

Classified By: Economic-Political Counselor Dean Yap for reasons 1.4
(b) and (d)


1. (U) This cable includes a request for guidance from
Treasury. Please see paragraph 5-6.


2. (S) On April 3, EconPol Counselor and Economic Unit Chief
presented reftel non-papers to Thomas Wieser, Director
General of the Ministry of Finance's Economic Policy and
Financial Markets Directorate. EconUnit Chief had presented
the non-papers on March 28 to Thomas Baier, Head of the MFA's
Multilateral International Law Unit. Wieser said that
Austria would implement the financial provisions of UNSCR
1803 through a Common Position under the EU's Common Foreign
and Security Policy. Wieser predicted that the Member States
would quickly agree to a Common Position, as France and the
UK were pressing for expedient action.


3. (S) Baier said the GoA would not support any further EU
autonomous sanctions. However, he added that the GoA would
not block autonomous sanctions, "if the large Member States
supported them."


4. (S) Regarding Iranian banks, Baier said that Austria
viewed the language "to exercise vigilance over the
activities.." as a virtual legal obligation to monitor
closely any activities Austrian financial institutions have
with Iranian banks. Wieser confirmed that the MoF had
written all banks and the Economic Chamber on March 6 to
admonish them to be careful of transactions with Iranian
banks. Wieser added that the MoF followed up with an even
stronger, verbal message to Austrian financial and economic
entities.


5. (S) Noting the USG was calling for enhanced due diligence
for Iranian transactions, Wieser asked what specific measures
the USG had itself undertaken. Wieser promised to
immediately contact the Austrian National Bank (ANB),which
now has bank supervision authority, to ensure that the ANB's
due diligence was in line with FATF and UNSCR standards.
Wieser noted that, as of January 1, the ANB had taken on
additional supervisory functions, including anti-money
laundering and anti-terrorist financing, from the Austrian
Financial Market Authority. According to Wieser, the ANB was
still in the process of fully assuming these new roles.
Wieser noted that Vice Chancellor and Finance Minister
Wilhelm Molterer was trying to free up time on April 11 to
meet with Treasury U/S Levey during his Washington visit. He
suggested this might be an opportunity to discuss enhanced
due diligence measures regarding Iranian financial
transactions.


6. (S) Guidance Request: Post appreciates any further
details, which we could share with the GoA, on what specific
measures U.S. regulatory authorities have taken to enhance
due diligence of Iranian financial transactions and accounts.

Kilner