US embassy cable - 03ROME5559

UNCLAS ROME 005559 
 
SIPDIS 
 
 
DEPT FOR EB - SALOOM 
TREASURY FOR ZARATE AND MURDEN 
 
E.O. 12958: N/A 
TAGS: ETTC, IZ, IT, UNSC 
SUBJECT: PROMPTING BANKS TO COMPLY WITH UN RESOLUTION ON 
FROZEN IRAQI ASSETS 
 
REF: ROME 05542 
 
1. (SBU) AS FINANCE MINISTRY OFFICIALS INDICATED IN RESPONSE 
TO OUR APPROACHES ON FROZEN IRAQI ASSETS, THE FINANCIAL 
    SECURITY COMMITTEE (FSC) DISCUSSED THIS ISSUE AT ITS DECEMBER 
11 MEETING (REF A).  IT WAS AGREED THAT SENIOR FINANCE AND 
CENTRAL BANK OFFICIALS WILL CONTACT ITALIAN BANKS DIRECTLY TO 
TRANSFER FROZEN IRAQI ASSETS TO THE DEVELOPMENT FUND FOR IRAQ 
(DFI).  ROBERTO CICIANI, SENIOR DIRECTOR, FINANCE MINISTRY, 
TOLD ECONOFF ON DECEMBER 12 THAT THE CENTRAL BANK'S UFFICIO 
ITALIANO DEI CAMBI HAS SENT OUT LETTERS TO BANKS REGARDING 
THE OBLIGATION TO TRANSFER FUNDS TO THE DFI AS INDICATED IN 
ANNEX THREE OF THE EU RESOLUTION PASSED LAST WEEK. THE FSC IS 
CONFIDENT THAT THE BANKS WILL BE FORTHCOMING AND TRANSFER 
FUNDS BY THE END OF THE MONTH. 
 
2. (SBU) FINANCE SECRETARY GENERAL DOMENICO SINISCALCO WILL 
ALSO SEND OUT LETTERS TO BANKS THAT SEEK REPAYMENT OF 
OUTSTANDING CREDIT.  THE LETTER WILL INSTRUCT BANKS TO COMPLY 
- IMMEDIATELY -- WITH THE UN AND EU DIRECTIVES.  BANKS THAT 
CONTINUE TO SEEK ANY EXCEPTION MUST PRESENT THEIR CASE - WITH 
ANY SUPPORTING LEGAL JUSTIFICATION - TO THE FINANCIAL 
SECURITY COMMITTEE.  CICIANI SAID THE FSC IS DECIDING WHAT 
DEADLINE SHOULD BE ESTABLISHED FOR BANKS THAT SEEK A RULING 
FROM THE FSC, BUT COMMENTED THAT THE DEADLINE WILL BE TIGHT. 
THE FSC IS AWARE THAT UNDER UNSCR 1483, EXCEPTIONS ARE NARROW 
IN SCOPE, AND WILL MAKE ITS RULING IN STRICT ACCORDANCE WITH 
UNSCR 1483. 
 
3. (SBU) THE FSC DID NOT IDENTIFY POSSIBLE PUNITIVE ACTIONS, 
SHOULD THE BANKS NOT COMPLY, CICIANI STATED. COMMITTEE 
MEMBERS WANTED TO SEE THE RESPONSE OF BANKS BEFORE DECIDING 
UPON SUCH MEASURES. 
 
SEMBLER 

 
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 2003ROME05559 - Classification: UNCLASSIFIED