VZCZCXRO5987
OO RUEHAP RUEHBC RUEHDT RUEHGI RUEHGR RUEHKN RUEHKR RUEHMJ RUEHMR
RUEHPA RUEHPB RUEHPOD RUEHRN RUEHROV RUEHYG
DE RUEHC #4408/01 3012131
ZNR UUUUU ZZH
O 272125Z OCT 08
FM SECSTATE WASHDC
TO ALL DIPLOMATIC POSTS COLLECTIVE IMMEDIATE
RUEATRS/TREASURY DEPT WASHINGTON DC IMMEDIATE 9920

UNCLAS SECTION 01 OF 02 STATE 114408 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KNNP MNUC IR GM PREL PARM EFIN
SUBJECT: DESIGNATION OF ADDITIONAL IRANIAN ENTITIES AND 
INDIVIDUALS UNDER E.O. 13382 
 
¶1.  (SBU) This is an action request.  Please see 
paragraphs three, five, and six. 
 
------- 
SUMMARY 
------- 
 
¶2. (SBU) The United States designated the Export 
Development Bank of Iran (EDBI) and three affiliated 
entities under E.O. 13382 ("Blocking the Property of 
Weapons of Mass Destruction Proliferators and their 
Supporters") on October 22, 2008.  These designations 
are consistent with obligations in UN Security Council 
Resolutions (UNSCRs) 1737, 1747 and 1803, which require 
Member States to freeze the assets of entities and 
individuals designated by the UN Security Council as 
being involved in Iran's nuclear or missile programs, 
and freeze the assets of entities acting on their behalf 
or at their direction.  These designations are also 
consistent with obligations in Paragraph 10 of UNSCR 
1803, which calls upon all Member States to exercise 
vigilance over the activities of financial institutions 
in their territories with all banks domiciled in Iran, 
in particular with Bank Melli and Bank Saderat, and 
their branches and subsidiaries abroad, in order to 
avoid such activities contributing to proliferation 
sensitive nuclear activities, or to the development of 
nuclear weapon delivery systems, as referred to in 
resolution 1737 (2006).  The Financial Action Task 
Force, the world's premier standard-setting body for 
countering illicit financial transactions, on October 
17, 2008, issued guidance on implementation of the 
financial provisions of UNSCR 1803, which can be found 
at www.fatf-gafi.org/dataoecd/47/41/41529339.pdf . 
 
¶3. (SBU) The Export Development Bank of Iran provides 
financial services to multiple subordinate entities of 
Iran's Ministry of Defense and Armed Forces Logistics 
(MODAFL) that permit these entities to advance Iran's 
WMD programs.  EDBI has facilitated the ongoing 
procurement activities of various front companies 
associated with MODAFL-subordinate entities.  Also 
designated were three additional entities which were 
found to be owned or controlled by or acting or 
purporting to act for or on behalf of the EDBI. These 
entities are: the EDBI Stock Brokerage Company and the 
EDBI Exchange Company, both located in Iran, and Banco 
Internacional de Desarrollo, CA, a financial institution 
located in Venezuela.   These designations highlight the 
dangers of doing business with Iranian financial 
institutions, and provide information that will help 
financial institutions in the U.S. and worldwide protect 
themselves from deceptive financial practices employed 
by Iranian entities like the EDBI that engage in or 
support proliferation. 
 
For GERMANY only: 
(SBU)  Europaisich-Iranische Handelsbank AG (EIH), a 
German bank, has been one of the key financial 
institutions that the EDBI uses to facilitate this 
activity in Europe. 
 
¶4.  (SBU) We want to convey to host governments that any 
entity in their jurisdiction found to be conducting 
business with EDBI and its affiliates and any other 
designated entities, or any entity that is owned or 
controlled by, or acting for or on behalf of EDBI and 
its affiliates, may be subject to designation under E.O. 
¶13382. 
 
------------------------- 
OBJECTIVES/ACTION REQUEST 
------------------------- 
 
¶5. (SBU) Posts are requested to pursue the following 
objectives.  In doing so, Posts may draw from the press 
statement released by the State Department on October 
22, 2008, which can be found at 
www.state.gov/r/pa/prs/ps/2008/oct/111150.htm ; the press 
statement released by the Treasury Department, which can 
be found at www.treasury.gov/press/releases/hp1231.htm; 
and paragraphs 2-4 above.  Press statements may be 
passed to host government officials. 
 
-- Inform host government officials of the U.S. 
designations under E.O. 13382 of the Export Development 
 
STATE 00114408  002 OF 002 
 
 
Bank of Iran (EDBI), and its affiliates: the EDBI Stock 
Brokerage Company and the EDBI Exchange Company, both 
located in Iran; and Banco Internacional de Desarrollo, 
CA, a financial institution located in Venezuela. 
 
-- Notify host government officials that these 
designations are aimed at implementing USG obligations 
under UNSCRs 1737, 1747 and 1803. 
 
-- Urge host governments, in accordance with obligations 
under UNSCRs 1737, 1747 and 1803, and consistent with 
national laws and regulations, to freeze the assets of 
these entities if they have not already done so, as well 
as the assets of persons or entities acting on their 
behalf or at their direction, or by entities owned or 
controlled by them. 
 
-- Note that firms in the jurisdiction of host 
governments risk designation under E.O. 13382 if they 
act or purport to act for or on behalf of, directly or 
indirectly, EDBI and its affiliates, or any other E.O. 
13382 designated entity, and/or if they provide, or 
attempt to provide, financial, material, technological, 
or other support for, or goods or services in support of 
any designated entity. 
 
-- Remind host governments that on October 17, 2008, 
Financial Action Task Force recently issued guidance on 
Paragraph 10 of UNSCR 1803, which calls upon all Member 
States to exercise vigilance over the activities of 
financial institutions in their territories with all 
banks domiciled in Iran, in particular with Bank Melli 
and Bank Saderat, and their branches and subsidiaries 
abroad.  The link to the guidance can be found at 
www.fatf-gafi.org/dataoecd/47/41/41529339.pdf . 
 
For Germany Only: 
-- Urge Germany to consider the heightened risk posed by 
EIH's relationship with EDBI and take immediate steps to 
address that risk. 
 
------------------ 
REPORTING DEADLINE 
------------------ 
 
¶6.  (U) Please report delivery of the demarche and any 
response within seven days of receipt of this cable. 
Please slug replies for ISN, T, TREASURY, and NEA/IR. 
Please use SIPDIS caption on all responses. 
 
---------------- 
POINT OF CONTACT 
---------------- 
 
¶7.  (U)  Washington point of contact for follow-up 
information is Kevin McGeehan, ISN/CPI, (202) 647-5408, 
McGeehanKJ@state.sgov.gov. 
 
¶8.  (U) Department thanks Post for its assistance. 
RICE