S E C R E T VALLETTA 000240

SIPDIS

FOR ISN, T, EAP, EUR, TREASURY, AND NEA

E.O. 12958: DECL: 05/27/2019
TAGS: EFIN ETTC KNNP PREL PARM IR UK GM MT
SUBJECT: MALTA: DEMARCHE DELIVERED ON IRISL CONTINUING
EVASIVE ACTIVITIES

REF: STATE 52348

Classified By: CDA Jason Davis, reasons 1.4 (b) and (d)


1. (S) On May 26 Charge' met Alan Caruana, Chief of Staff to
Malta's Minister of Finance, to discuss reftel request
related to IRISL's continuing evasive activities in Malta.


2. (S) Caruana was already familiar with the materials
provided reftel, having received them in a meeting last month
with U/S Treasury Levey. He said that Malta Maritime
Authority (MMA) chairman Mark Portelli had already met with
Ann Fenech (of Fenech and Fenech) to warn her of the possible
risk to her firm's, and Malta's, reputation should her firm
continue to provide services to IRISL. Caruana promised to
pass reftel request to his boss, Minister of Finance Borg,
and said that he himself would seek out an early opportunity
to meet with Fenech to specifically warn her against
providing services that could have the effect of facilitating
IRISL's ability to engage in proliferation-related
activities.


3. (S) Caruana said he had heard from Ganado & Associates,
the Maltese firm that had previously provided services to
IRISL, that it (Ganado) had gotten out of the business after
several of its lawyers were pulled aside by DHS for
additional Iran-related questioning when entering the U.S.
with their families on vacation. Caruana said he assumed that
DHS had been provided with a list of Ganado lawyers, and
asked whether the names of lawyers working for Fenech and
Fenech could likewise be provided to DHS, in hopes that
additional questioning might serve as a deterrent. Charge'
assured him that this had already been done.
DAVIS