IRAN INTERESTED IN "INVESTING" BILLIONS OF EUROS

S E C R E T VALLETTA 000075


NOFORN

E.O. 12958: DECL: 02/13/2019
TAGS: PARM PREL EFIN KNNP MT IR
SUBJECT: IRAN INTERESTED IN "INVESTING" BILLIONS OF EUROS
IN MALTA'S BANKING SYSTEM

REF: 08 VALLETTA 517

Classified By: Charge d'Affaires Jason L. Davis for reasons 1.4 (b) and (d)

1.(S-NF) Alan Caruana (protect),the Chief of Staff to the
Maltese Finance Minister who was helpful in our successful
attempt (reftel) to persuade Malta to go beyond UN- and
EU-approved sanctions in preventing Iran from establishing a
presence in Malta's financial sector, mentioned to Charge
earlier this week that Iran had recently approached the
Maltese Ambassador to France to express interest in
"investing several billion euros" in Malta. Charge asked for
a meeting to get further details.


2. (S-NF) In a February 12 meeting, Caruana shared the text
of an email from Malta's Ambassador in Paris, which read in
part "(The Iranian Ambassador to Paris) asked whether our
Maltese banking system is autonomous or whether it is subject
in any way to US or British control. I told him that we
certainly adhered to EU rules, but he answered that that
would not be a problem because France, for instance, is
currently discussing the way to get Iran to invest 4 billion
Euros. He said that he would be very interested to know more
about the structures of our banking system as eventualy, if
we are as sound as I made it seem and if we are not subject
to US or British controls, Iran would seriously examine the
possibility of investing money in Malta. I am not sure
whether we are participating in some financial embargo and
tried to avoid the question being asked directly to me."


3. (S-NF) Charge told Caruana he assumed based on previous
conversations that Malta would have no interest in pursuing
such an investment; Caruana confirmed that this was the case
and that he had already instructed the Ambassador to stand
down.


DAVIS