Cablegate: German Regulators Paying Special Attention to Europe-Iran

VZCZCXRO8764
OO RUEHAG RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHLZ
DE RUEHDF #0003 0101337
ZNR UUUUU ZZH
O R 101337Z JAN 08
FM AMCONSUL DUSSELDORF
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0108
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCNIRA/IRAN COLLECTIVE
RUCNFRG/FRG COLLECTIVE
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEHDF/AMCONSUL DUSSELDORF 0124

UNCLAS DUSSELDORF 000003

SIPDIS

SIPDIS

PASS: P, T, E, EEB, NEA/IR, ISN, EUR/AGS

E.O. 12958: N/A
TAGS: EFIN ECON PTER PGOV KNNP ETTC MNUC PREL GM IR
SUBJECT: GERMAN REGULATORS PAYING SPECIAL ATTENTION TO EUROPE-IRAN
COMMERCIAL BANK

REF: A. A. 07 BERLIN 2256

B. B. 07 BERLIN 2192

Sensitive but Unclassified -- Not for Internet Distribution

1. (SBU) German federal banking regulators report they have
placed the Hamburg-based Europe-Iran Commercial Bank
(Europaeisch-Iranische Handelsbank) under "special supervision."
As part of Mission Germany's ongoing dialogue with the Federal
Finance Ministry in Berlin and Bonn-based German federal bank
regulators on Iran-related issues, senior German Federal
Financial Supervisory Authority (BaFin) officials told
Duesseldorf Pol/Econ Officer on January 9 that BaFin officials
have regular meetings with the bank and closely observe their
business activities, meeting personally with bank
representatives four to six times a year (significantly more
than other banks, which tend to receive only one to two visits
annually). Our interlocutors added that BaFin requires the
Europe-Iran Commercial Bank to submit special reports and that
regulatory officials evaluate their trade financing as well as
the origin of personal deposits.

2. (U) On November 12, 2007, BaFin issued a circular notice
asking German banks and financial service institutions to take
into consideration the October 11 Financial Action Task Force
recommendations on exercising additional due diligence and
scrutiny on all Iran-related transactions. Embassy Berlin has
provided the text of the BaFin circular to Treasury, EEB, EUR,
and ISN.

3. (U) This message was coordinated with Embassy Berlin and
Consulate General Hamburg.

BOYSE

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