ITALY TO ALERT PRIVATE SECTOR ENTITIES TO USG

UNCLAS ROME 001264 SENSITIVE SIPDIS ISN/CPI: FOR JCHALMERS PLEASE PASS TO APPROPRIATE CONTACT AT: T, TREASURY, EAP, NEA/IR E.O. 12958: N/A TAGS: EFIN IR IT KNNP PARM SUBJECT: ITALY TO ALERT PRIVATE SECTOR ENTITIES TO USG DESIGNATION OF MALAYSIAN BANK AND BANK MELLAT CHAIRMAN REF: STATE 115135 ¶1. (SBU) SUMMARY. An official in the Italian Ministry of Economics and Finance (MEF) stated that she will advise private sector institutions of the USG designation, under Executive Order 13382 (reftel),of First East Export Bank (FEEB) of Malaysia, and of the Chairman of Bank Mellat of Iran, and will warn of the potential consequences of conducting business with designated entities. END SUMMARY ¶2. (SBU) On 13 November, ECONOFF conveyed to a MEF official notification that the USG has designated a subsidiary of Bank Mellat, and Ali Divandari (Chairman of Bank Mellat of Iran), and reminded the official that entities found to be conducting business with designated individuals or entities may themselves be subject to designation. ¶3. (SBU) The MEF official stated that the Ministry will issue a warning to alert the private sector about the USG designations, and will advise them to "exercise enhanced due diligence" when conducting business or financial transactions with any Iranian intermediary. THORNE