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