VZCZCXYZ0034
OO RUEHWEB

DE RUEHC #1863 2412019
ZNY SSSSS ZZH
O 292005Z AUG 07
FM SECSTATE WASHDC
TO AMEMBASSY AMMAN IMMEDIATE 0000

S E C R E T STATE 121863 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 08/29/2017 
TAGS: KNNP XB XF PREL PARM KN IR
SUBJECT: NORTH KOREAN USE OF ARAB BANK NETWORK 
 
REF: A. STATE 72416 
     ¶B. STATE 61222 
 
Classified By: ACTING ISN PDAS GEORGE LOOK FOR REASONS 1.4 (B) AND (D) 
 
 ¶1.  (U)  This is an action request.  Please see paragraph 3. 
 
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SUMMARY/BACKGROUND 
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¶2.  (S)  Washington is increasingly concerned about efforts 
by North Korea's Foreign Trade Bank to assist Tanchon 
Commercial Bank to move funds from both Syria and Iran (REF A 
& B).  Tanchon Commercial Bank is the primary financial agent 
behind the DPRK's weapons programs and was designated by the 
USG under E.O. 13382 as an entity that provides financial 
support to the DPRK's pursuit of weapons of mass destruction. 
 These transactions have occurred through Arab Bank PLC, one 
of the oldest and most respected banks in the Middle East. 
Arab Bank is headquartered in Amman, Jordan and is the 
largest Arab banking network in the world with 400 branch 
locations.  Arab Bank also owns a 64.2 percent majority stake 
in Arab Tunisian Bank.  We urge Jordan to maintain vigilance 
with regard to Syrian, Iranian, and North Korean financial 
transactions in its jurisdiction to prevent these countries 
from using deceptive financial practices to further their 
proliferation-related activities. 
 
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OBJECTIVES 
---------- 
 
¶3.  (S)  Washington requests Post deliver the talking points 
and non-paper in paragraph 4 to appropriate host government 
officials in the foreign affairs and financial ministries. 
 
-- (S) To alert host government officials to information we 
have about Syrian, Iranian, and North Korean financial 
activities that could be occurring in the Arab Bank network, 
which is headquartered in Amman, and urge appropriate 
authorities to investigate such transactions, especially 
correspondent relationships, and to take steps to freeze any 
accounts or transactions held or conducted in support of 
proliferation-related activities. 
 
--  (S)  To urge the Kingdom of Jordan to maintain increased 
vigilance over financial or commercial transactions with 
Syrian, Iranian, and North Korean entities and banks in its 
jurisdiction. 
 
--  (S)  To urge the Kingdom of Jordan to investigate these 
financial transactions, and to take appropriate action. 
 
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BACKGROUND/NONPAPER 
------------------- 
 
¶4.  (S/REL JORDAN) Begin points: 
 
--  (S/REL TO JORDAN)  In light of our commitment to share as 
much information with your government as possible on Iranian 
and DPRK proliferation-related activities, we would like to 
raise serious concerns about Syrian, Iranian, and North 
Korean financial activities in the Arab Bank network. 
 
--  (S/REL TO JORDAN)  It has long been the policy of the 
United States to prevent the exploitation of the 
international financial system for the purpose of conducting 
illicit or proliferation-related financial transactions, and 
to urge our international partners to do the same. 
 
--  (S/REL TO JORDAN)  We are concerned that Iranian, Syrian, 
and DPRK-related entities may be assisting each other in 
engaging in deceptive practices that exploit and weaken the 
international financial system and undermine global financial 
standards and best practices. 
 
--  (S/REL TO JORDAN)  We are concerned that Iran, Syria, and 
DPRK proliferation entities are using the Arab Bank network 
to process what may be proliferation-related transactions. 
 
--  (S/REL TO JORDAN)  The United States has information that 
in 2007, North Korea's Foreign Trade Bank mission in Tripoli, 
Libya (FTB Libya) has expanded its role as a key node in 
North Korea's banking network and is helping Tanchon 
Commercial Bank, the banking arm of North Korea's primary 
weapons trading firm, KOMID, to move funds from both Syria 
and Iran. 
 
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SYRIA-DPRK 
---------- 
 
--  (S/REL TO JORDAN)  In 2007, FTB Libya provided assistance 
to Tanchon in making remittances from funds from the sale of 
unspecified, probably proliferation-related goods in Syria. 
Our information indicates that Tanchon is establishing this 
new arrangement because Tanchon could no longer remit funds 
through a route it had previously used.  FTB Libya arranged 
remittance routes for Tanchon from Syria and other locations 
via intermediary banks.  We have information that Tanchon's 
financial transfers are conducted surreptitiously by using 
either aliases or front companies. 
 
--  (S/REL TO JORDAN)  By mid-February, FTB Libya arranged 
remittances of funds for Tanchon through several Arab Bank 
branches in the Middle East.  Remittances going directly from 
Syria could be sent from Arab Bank-Syria in Damascus, a 
sister bank to Arab Tunisian Bank. 
 
--  (S/REL TO JORDAN)  The United States has information that 
FTB Libya arranged remittance routes for Tanchon from Syria 
and other locations via intermediary banks in Europe. 
 
--  (S/REL TO JORDAN)  These transfers, which were probably 
proliferation-related, occurred inside the Arab Bank network 
and involved both Arab Bank branches and Arab Tunisian Bank, 
of which Arab Bank is a 64.2 percent stakeholder. 
 
--  (S/REL TO JORDAN)  By processing these transactions, Arab 
Bank could be unwittingly assisting proliferation-related 
activities. 
 
 
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IRAN-DPRK 
--------- 
 
--  (S/REL TO JORDAN)  We have information that FTB Libya was 
also planning to establish a route for Tanchon to use from 
Iran. 
 
--  (S/REL TO JORDAN)  These transactions could be subject to 
the restrictions in UN Security Council Resolutions 1737 and 
¶1747. 
 
--  (S/REL TO JORDAN)  The U.S. urges countries to maintain 
increased vigilance over financial or commercial transactions 
with Syrian, Iranian, and North Korean entities and banks, 
which may be using deceptive financial practices such as 
those described above to circumvent targeted sanctions 
imposed pursuant to UNSC resolutions and continue their 
illicit or proliferation-related dealings. 
 
--  (S/REL TO JORDAN)  In the spirit of our continued 
non-proliferation cooperation and joint efforts to prevent 
Syrian, Iranian, and North Korean abuse of the international 
financial system, we urge your government to investigate 
these financial transactions, and to take appropriate action. 
 
 
--  (S/REL TO JORDAN)  We look forward to working with you on 
this and other related security and counter-proliferation 
matters, and are prepared to provide additional assistance as 
appropriate. 
 
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REPORTING DEADLINE 
------------------ 
 
¶5.  (U)  Post should report results within seven (7) business 
days of receipt of this cable.  Please slug replies for ISN, 
T, TREASURY, EAP and NEA.  Please include SIPDIS in all 
replies. 
 
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POINT OF CONTACT 
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¶6.  (U)  Washington point of contact for follow-up 
information is Kevin McGeehan, ISN/CPI, (202) 647-5408, 
McGeehanKJ@state.sgov.gov. 
 
¶7. (U)  Department thanks Post for its assistance. 
RICE