VZCZCXRO8017
OO RUEHDE RUEHDIR
DE RUEHAD #1293/01 2131307
ZNY SSSSS ZZH
O 011307Z AUG 07
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9477
INFO RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0137
RHEHNSC/NSC WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RHMFISS/FBI WASHINGTON DC IMMEDIATE
RHMFISS/DEPT OF HOMELAND SECURITY IA WASHINGTON DC IMMEDIATE
RHMFISS/DEPT OF HOMELAND SECURITY WASHINGTON DC IMMEDIATE
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHDE/AMCONSUL DUBAI PRIORITY 7216

S E C R E T SECTION 01 OF 02 ABU DHABI 001293 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR NEA/IR, NEA/ARP, EB/ESC/TFS, S/CT, ISN/CPI - 
MCGEEHEN 
TREASURY FOR U/S LEVEY, ACURTIS, KHECHT 
DHS FOR DHS/ICE, FINANCIAL AND TRADE INVESTIGATIONS, 
KDELLACOLI, JGALLION 
NSC FOR JZARATE, NRAMCHAND, EABRAMS 
 
E.O. 12958: DECL: 08/01/2017 
TAGS: PTER KTFN PREL IR AE
SUBJECT: UAE CENTRAL BANK GOVERNOR ON IRANIAN BANK SEPAH, 
CASH COURIERS, AND FBI REQUEST 
 
REF: A. ABU DHABI 1123 
     ¶B. ABU DHABI 832 
 
ABU DHABI 00001293  001.2 OF 002 
 
 
Classified By: Ambassador Michele J. Sison for reasons 1.4 (b), (d). 
 
¶1. (U) This contains business proprietary information. 
 
¶2. (C) Summary:  On August 1, Ambassador, accompanied by OFAC 
Attach and Econchief, met with UAE Central Bank Governor 
Sultan Nasser Al-Suwaidi.  Al-Suwaidi confirmed that Iranian 
Bank Sepah's trade finance accounts with UAE banks remained 
frozen, but reiterated the UAE's intention to unfreeze the 
trade finance debit accounts, as "the only parties being 
harmed by the freezing were UAE banks."   Ambassador pressed 
on our continued interest in a cash courier interdiction 
operation with the UAEG and passed a revised plan to the 
Governor, who heads the UAE Joint Counter Terror Finance 
Coordinating Committee (JTFCC) team.  Al-Suwaidi committed to 
having the JTFCC members, including Dubai Customs and Federal 
Customs, study the revised proposal.  Al-Suwaidi welcomed a 
proposed visit by the FBI to examine records relating to the 
September 11, 2001 attacks and said that he saw no problems 
with AIG obtaining a license to establish a private banking 
representative office in the UAE.  End Summary. 
 
1737 and Bank Sepah 
------------------- 
 
¶3. (C) Ambassador raised the UAEG's June 25 notification to 
the 1737 Sanctions Committee of its intention to unfreeze 
certain trade finance debit accounts under the name of bank 
Sepah and our request for the UAEG to delay or withdraw its 
request and to provide more information (ref a).  Al-Suwaidi 
confirmed that the accounts were still frozen, but reported 
that he intended to order their unfreezing shortly. He 
stressed that the accounts represented money owed to UAE 
companies and represented contractual obligations entered 
into prior to the UNSC designation of Bank Sepah.  This is 
permitted under UNSCRs 1737 and 1747, he commented.  He noted 
that these funds were for letters of credit and that 
currently they represented a negative for UAE banks. 
Unfreezing the accounts, he stated, would bring the accounts 
to "a square position" then they would be closed.  He said 
that the UAE agreed with the need to isolate Iran 
financially, but did not agree with harming UAE banks.  The 
funds, he stressed, would not benefit Bank Sepah or any UNSC 
designated entity.  In fact, Sepah would have to pay out to 
these accounts. 
 
Cash Courier Operation Plan Passed 
---------------------------------- 
 
¶4. (C) Ambassador raised once again our request to have the 
UAE participate in a cash courier operation with DHS/ICE, a 
proposal to which the Governor had previously been 
unreceptive.  She stressed that DHS/ICE had revised the plan 
to ensure that U.S. Customs officers would not be visible 
during any Dubai Customs inspection of arriving passengers. 
DHS/ICE attach had developed an alternative proposal for a 
joint operation focusing on a customs "red line/green line" 
model with targeted searched based on high-risk profiling and 
identification of suspicious travel itineraries or behavior 
in the customs area.  She explained this disclosure approach 
is similar to how UK and UAE customs operate, while U.S. 
Customs uses a declaration approach.  Al-Suwaidi took the 
revised plan on board and said that the UAE's JTFCC team 
would review it.  (Note:  On July 25, Ambassador had 
consulted with Dubai State Security Chief BG Mohammed 
Al-Qamzi about how to push the cash courier operation 
through.  Al-Qamzi told Ambassador that he thought the 
problem related to the possibility or non-UAE nationals 
playing a public role in the operation. Al-Qamzi recently 
joined the UAE's JTFCC team.  End note.) 
 
 
FBI Request for Assistance 
-------------------------- 
 
ABU DHABI 00001293  002.2 OF 002 
 
 
 
¶5. (S) Ambassador turned the discussion to an FBI request for 
assistance.  She noted the close cooperation between the 
Central Bank and the FBI in identifying possible 
co-conspirators in the September 11 attacks and explained 
that the FBI was identifying and collecting evidence with 
regard to five individuals: Khalid Shaykh Mohammed, Ramzi 
Mohammad Abdullah Binalshibh, Ali Abd Al-Aziz Ali, Mustafa 
Ahmed Al-Hawsawi, and Muhammad Mani Ahmed Al-Qahtani.  The 
FBI, she explained, would like to bring in a team.  She 
explained that she had passed the same message to UAE 
National Security Advisor and Director of State Security 
Directorate (SSD) Sheikh Hazza bin Zayed Al-Nahyan, who had 
welcomed the visit.  Al-Suwaidi said that the Central Bank 
would also welcome the visit. 
 
AIG Private Bank License 
------------------------ 
 
¶6. (SBU) Turning to other matters, Ambassador explained that 
she had been approached by American International Group's 
regional representative about a request to open a 
representative office of the AIG Private Bank in the UAE. 
The application is pending Central Bank Board approval. 
Without prejudging any regulatory decision, Ambassador asked 
for the board to consider it in a timely fashion.  Al-Suwaidi 
replied that there were normally no regulatory problems with 
obtaining a representative office banking license, and he did 
not think AIG would have a problem.  It had not been 
considered during the May board meeting as the board was 
working through a heavy agenda prior to the summer. 
SISON