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UNCLAS STATE 002945 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: ETTC IR KN KNNP PARM PREL
 
SUBJECT: ADDITIONAL IRAN DESIGNATIONS UNDER E.O. 13382 
 
 
 ¶1. (SBU) This is an action request, please see paragraph two. 
 
OBJECTIVES 
---------- 
 
¶2. (SBU) Washington requests that addressees notify host 
government officials that the United States designated two 
additional entities and one individual under E.O. 13382 
("Blocking the Property of Weapons of Mass Destruction 
Proliferators and their Supporters") on January 9, 2007, for 
their connections to Iran's proliferation activities. 
Washington informed the Embassies of France, Germany, Italy, 
and the United Kingdom of the designations on January 8. 
These designations are aimed at protecting the U.S. financial 
system from being used in financing proliferation activity 
facilitated by Bank Sepah. Addressees are requested to 
provide the nonpaper in paragraph four to host government 
officials. 
 
REPORTING DEADLINE 
------------------ 
 
¶3. (U) Public announcement of the designation in the U.S. 
occurred on January 9, 2007.  Please report delivery of the 
U.S. nonpaper and any immediate response by January 22, 2007. 
 Please slug replies for ISN, T, TREASURY, EUR and NEA. 
 
 
BACKGROUND/NONPAPER 
------------------- 
 
¶4. (U) Begin text of background/nonpaper for RUSSIA, CHINA, 
CANADA, AUSTRALIA, UAE, NEW ZEALAND, KUWAIT, BAHRAIN, OMAN, 
SAUDI ARABIA, BELGIUM, REPUBLIC OF CONGO, GHANA, INDONESIA, 
PANAMA, PERU, QATAR, SLOVAKIA, SOUTH AFRICA, JAPAN: 
 
The U.S. wishes to inform your government that the U.S. 
Treasury Department on January 9, 2007, designated two 
additional entities and one additional individual for their 
support of Iranian entities engaged in proliferation related 
activities pursuant to Executive Order (E.O.) 13382 
("Blocking the Property of Weapons of Mass Destruction 
Proliferators and their Supporters"), an authority aimed at 
freezing the assets of proliferators of weapons of mass 
destruction and their supporters and prohibiting transactions 
and trade between those designated entities and banks in U.S. 
jurisdiction. 
 
The United States has used E.O. 13382 to designate eight 
other Iranian entities for proliferation activities. 
 
The following names have been added to Treasury's Office of 
Foreign Assets Control (OFAC) list of Specially Designated 
Nationals and Blocked Persons ("SDN list") and published in 
the U.S. Federal Register pursuant to Executive Order 13382. 
-- BANK SEPAH, Imam Khomeini Square, P.O. Box 11364-9569, 
Tehran, Iran: all offices worldwide 
 
-- BANK SEPAH INTERNATIONAL, PLC, 5/7 Eastcheap, London, EC3M 
1JT, United Kingdom 
 
-- AHMAD DERAKHSHANDEH, c/o BANK SEPAH, No 33 Hormozan 
Building, Pirozan St., Sharak Ghods, Tehran, Iran; DOB 11 
August, 1956; POB Iran 
 
Bank Sepah was designated for providing financial support and 
services for three entities previously designated for 
proliferation activities under E.O. 13382: the Aerospace 
Industries Organization (AIO), the Shahid Hemmat Industries 
Group (SHIG), and the Shahid Bakeri Industries Group (SBIG). 
The other two designees - Bank Sepah International, PLC, (a 
wholly owned subsidiary) UK and Bank Sepah Chairman and 
Manager Ahmad Derakhshandeh - were designated because they 
are owned or controlled by, or act or purport to act for or 
on behalf of, Bank Sepah. 
 
These designations are one part of the U.S. strategy to 
counter the proliferation of weapons of mass destruction. 
 
The U.S. action also helps to implement UN Security Council 
Resolution 1737, which requires States to prevent assistance 
to Iran related to its nuclear and delivery system programs. 
As you know, SHIG and SBIG were included in the Annex of 
UNSCR 1737, as is the director of AIO.  The U.S. plans to 
propose the addition of all Iranian entities and individuals 
designated pursuant to E.O. 13382 to the Annex. 
 
SBIG is also involved in Iran's missile programs.  Among the 
weapons SBIG produces are the Fateh-110 missile, with a range 
of 200 kilometers, and the Fajr rocket systems, a seri