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UNCLAS STATE 115135 
 
 
E.O. 12958: N/A 
TAGS: KNNP EFIN PARM IR
 
SUBJECT: DESIGNATION OF MALAYSIAN BANK AND BANK MELLAT 
CHAIRMAN UNDER E.O. 13382 
 
¶1.  (U) This is an action request please see paragraph 
¶5. 
 
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SUMMARY/BACKGROUND 
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¶2. (U) The United States on November 5, 2009, designated 
First East Export Bank (FEEB), a Malaysia-based subsidiary of 
Iran's state-owned Bank Mellat, and Iranian national and 
chairman of Bank Mellat, Ali Divandari, under Executive Order 
(E.O.) 13382 ("Blocking the Property of Weapons of Mass 
Destruction Proliferators and their Supporters").  FEEB was 
designated for being owned or controlled by Bank Mellat, and 
Divandari was designated for acting on behalf of Bank Mellat. 
 Bank Mellat has facilitated the movement of millions of 
dollars for Iran's nuclear program and was designated under 
E.O. 13382 on October 25, 2007.  E.O. 13382 freezes the 
assets of designated proliferators of weapons of mass 
destruction and their supporters and prohibits U.S. persons 
from engaging in any transactions with them. 
 
¶3.  (U) 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 or the 
Iran Sanctions Committee 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 the proliferation of sensitive 
nuclear activities, or to the development of nuclear weapon 
delivery systems, as referred to in resolution 1737 (2006). 
 
¶4.  (U) We want to notify host governments of the basis and 
significance of the designations and convey that any entity 
in their jurisdiction found to be conducting business with 
First East Export Bank and its affiliates and any other 
designated entities, or any entity that is owned or 
controlled by, or acting for or on behalf of FEEB and its 
affiliates, may be subject to designation under E.O. 13382. 
 
------------------------- 
ACTION REQUEST/OBJECTIVES 
------------------------- 
 
¶5. (SBU) Posts are requested to pursue the following 
objectives.  In doing so, Posts may draw from the press 
statement released by the Treasury Department, which can be 
found at www.treasury.gov/press/releases/tg355.htm.  The 
press statement may be passed to host government officials. 
 
-- Inform host government officials of the U.S. designations 
under E.O. 13382 of First East Export Bank (FEEB), and Bank 
Mellat's chairman, Ali Divandari. 
 
-- Notify host government officials that these designations 
are aimed at implementing USG obligations under UNSCRs 1737, 
1747 and 1803 and demonstrate that the United States will 
continue to implement our existing laws and sanctions against 
Iranian proliferation as long as Iran continues its illicit 
activities. 
 
-- Note that 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 Iranian 
entities that abuse the international financial system to 
support and facilitate proliferation activity. 
 
-- Urge host governments to take steps, in accordance with 
the measures adopted in UNSCRs 1737, 1747 and 1803 and their 
national authorities, to freeze the assets of this entity and 
individual, 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, FEEB, 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 February 25, 2009, the 
Financial Action Task Force (FATF) issued a statement calling 
for jurisdictions to impose countermeasures to protect 
against the risks posed to the international financial system 
by Iran's AML/CFT deficiencies, and to take these risks into 
account when considering requests by Iranian financial 
institutions to open branches and subsidiaries in foreign 
jurisdictions.  The United States urges host government 
financial regulators to apply extraordinary scrutiny on the 
operations of FEEB and all Iranian financial institutions, 
consistent with the UNSCRs on Iran and the FATF's guidance. 
 
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REPORTING DEADLINE 
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¶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, EAP and NEA/IR.  Please 
use SIPDIS caption on all responses. 
 
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POINT OF CONTACT 
---------------- 
 
¶7.  (U) Questions may be directed to ISN/CPI Jennifer 
Chalmers, 202-647-9715. chalmersja@state.sgov.gov. 
 
¶8.  (U) Department thanks Posts for their assistance. 
CLINTON 
 
 
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