PRENOTIFICATION OF ADDITIONAL DESIGNATIONS OF

UNCLAS SECTION 01 OF 02 STATE 018780 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EFIN PARM PREL SUBJECT: PRENOTIFICATION OF ADDITIONAL DESIGNATIONS OF IRANIAN ENTITIES UNDER E.O. 13382 ¶1. (SBU) This is an action request. Please see paragraph 3. -------------- SUMMARY -------------- ¶2. (SBU) The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) will, on Tuesday, March 3, announce the designations of 11 entities, affiliated with Iran's Bank Melli, under Executive Order (E.O.) 13382, "Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters." Bank Melli was designated by the United States under E.O. 13382 in October 2007, for providing financial services for Iranian front companies and entities engaged in proliferation activities. Two of the entities to be designated are located in U.K. territory (the Cayman Islands),and two are located in the United Arab Emirates. We wish to pre-notify our allies of these designations. -------------- OBJECTIVES/ACTION REQUEST -------------- ¶3. (SBU) Washington requests embassies pursue the following objectives with appropriate host government officials the afternoon of 2 March. We are requesting late delivery so as to avoid any possible capital flight or notice to the media. -- Note that the United States will designate eleven entities affiliated with Iran's Bank Melli under E.O. 13382 ("Blocking the Property of Weapons of Mass Destruction Proliferators and their Supporters") on March 3, 2009. -- FOR EMBASSY ABU DHABI ONLY: Note that two of the entities to be designated are located in the UAE. They are: 1) MELLI INVESTMENT HOLDING INTERNATIONAL (a.k.a. "MEHR"), 514, "Business Avenue" Building, Deira, PO Box 181878, Dubai, UAE, License Number: 107 2) BMIIC INTERNATIONAL GENERAL TRADING LTD. (a.k.a. "BMIIGT", a.k.a. "BMIICGT", a.k.a. "BMIIC Trading UAE"),P.O. Box 11567, Dubai, UAE; Deira, P.O. Box 181878, Dubai, UAE -- FOR EMBASSY LONDON ONLY: Note that two of the entities to be designated are located in the Cayman Islands. They are: 1) MEHR CAYMAN LTD., Walker House, 87 Mary Street, George Town, Cayman Islands KY 1-9002, Cayman Islands 2) FIRST PERSIAN INVESTMENT FUND (a.k.a. "FIRST PERSIA INVESTMENT FUND", a.k.a. "FPEF"),Walker House, 87 Mary Street, George Town, Cayman Islands KY, 1-9002, Cayman Islands; Clifton House, 75 Fort Street, PO Box 190, Grand Cayman KYI-II04, Cayman Islands; Rafi Alley, Vali Asr Avenue, Nader Alley, Tehran, 15116, Iran, PO Box 15875-3898 -- Note that these entities are being designated because they are owned or controlled by or acting or purporting to act for or on behalf of, directly or indirectly, the Bank Melli Iran Investment Company (BMIIC). The BMIIC is being designated because it is owned or controlled by Iran's Bank Melli. -- Convey that these designations are consistent with obligations in Paragraph 10 of UNSCR 1803, which calls upon all Member States to exercise vigilance over the activities of financial institutions in their territories with all banks domiciled in Iran, in particular with Bank Melli and Bank Saderat, and their branches and subsidiaries abroad, in order to avoid such activities contributing to proliferation sensitive nuclear activities, or to the development of nuclear weapon delivery systems, as referred to in resolution 1737 (2006). -- Reiterate that these designations highlight the risks of doing business with Iranian commercial and financial institutions, and provide information that will help financial institutions in the U.S. and worldwide protect themselves from deceptive financial practices employed by Iranian entities like the BMIIC and its affiliates that support proliferation entities. -- Urge host governments, in accordance with UNSCR 1803 and consistent with national laws and regulations, to freeze the STATE 00018780 002 OF 002 assets of persons or entities acting on the behalf of or at the direction of entities designated by the UN, as well as entities owned or controlled by them. -------------- REPORTING DEADLINE -------------- ¶4. (U) Post should report results within seven business days of receipt of this cable. Please slug replies for ISN, T, TREASURY, and NEA. Please use the caption SIPDIS in all replies. -------------- POINT OF CONTACT -------------- ¶5. (U) Washington point of contact for follow-up information is Jennifer Chalmers, ISN/CPI, (202) 647-9715. ¶6. (U) Department thanks Post for its assistance. CLINTON