VZCZCXYZ0014
PP RUEHWEB

DE RUEHKL #0750 1160758
ZNY CCCCC ZZH
P 260758Z APR 06
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 6491
INFO RUEATRS/DEPT OF TREASURY WASH DC PRIORITY

C O N F I D E N T I A L KUALA LUMPUR 000750 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR T, EAP, ISN 
STATE PLEAE PASS TO NSC (STEPHENS) 
TREASURY PLEASE PASS TO FINCEN 
 
E.O. 12958: DECL: 04/25/2016 
TAGS: EFIN KJUS KTFN KNNP MNUC PARM PREL MY
SUBJECT: MALAYSIA RESPONSE TO ADDITIONAL TANCHON COMMERCIAL 
BANK ACCOUNTS 
 
REF: SECSTATE 55463 
 
Classified By: Economic Counselor Colin Helmer.  Reason 1.4(d) 
 
¶1.  (C) Summary:  On April 25, Econoff delivered talking 
points and non-paper detailing additional information on 
Tanchon Commercial Bank to Koid Swee Lian, Director of the 
Financial Intelligence Unit (FIU) at Bank Negara Malaysia, 
the central bank.  Koid responded the next day that neither 
Malayan Banking Berhad (Maybank) nor Bank Negara had been 
able to find any data linking Tanchon to the bank's Singapore 
branch.  Koid requested further details on the alleged 
relationship so that Bank Negara may pursue it and confirm 
whether it in fact exists.  Koid also requested information 
on the process for correcting USG records of suspicious 
transactions.  If Bank Negara confirms that there is no 
relationship between Maybank and Tanchon, she would like to 
ask that this allegation be expunged from the record.  There 
is an action request in paragraph 4.  End Summary. 
 
¶2.  (U) On April 25, Econoff delivered talking points and 
non-paper detailing additional information on Tanchon 
Commercial Bank to Koid Swee Lian, Director of the Financial 
Intelligence Unit (FIU) at Bank Negara Malaysia, the central 
bank.  Koid thanked Econoff and explained that the FIU would 
send out the data to its constituent banks that day.  She 
stated clearly that she took the information about Tanchon 
and Maybank very seriously and would follow up immediately. 
 
¶3. (C) Koid contacted Econoff the next morning, explaining 
that Bank Negara had called both Maybank headquarters in 
Kuala Lumpur and Maybank's Singapore branch.  Both denied any 
connection to the North Korean bank.  They checked both their 
trade finance division and remittances and could find no 
record of Tanchon.  Koid said Maybank employs an 
identification system that should reject any transactions 
from Tanchon.  (Note:  Koid mentioned that this software is 
called SIDE OFAC.  It is a traffic filtering solution with 
all of the names listed by OFAC entered into its database 
that automatically blocks transactions from those 
institutions and individuals.  Tanchon is included in its 
database.   End Note.)  Bank Negara asked Maybank to look 
again to be sure, and specifically requested that Maybank 
look for an indirect transaction, such as currency exchange, 
where Tanchon might have originated an action through one or 
more intermediate banks. 
 
¶4. (C) Action Requested:  Koid requested further data on the 
alleged link between Tanchon and Maybank so that Bank Negara 
can confirm whether such a relationship exists.  Koid also 
requested information on the process for correcting USG 
records of suspicious transactions.  If Bank Negara confirms 
that there is no relationship between Maybank and Tanchon, 
she would like to ask that this allegation be expunged from 
the record.  In view of our close working relationship with 
the FIU, and the importance of this relationship for our 
counterterrorism finance cooperation with Malaysia, post 
requests Washington guidance for responding to Koid's 
request.  If a complete response will require more than a few 
days, post requests an interim response that will allow us to 
assure FIU staff that we are taking this matter seriously. 
LAFLEUR