US embassy cable - 04ZAGREB185

UNCLAS ZAGREB 000185 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EB/ES/TSP, IO/PHO AND L/EB 
 
E.O. 12958: N/A 
TAGS: EFIN, PREL, IZ, HR 
SUBJECT: COURT ORDERS TRANSFER OF IRAQ NATION BANK FUNDS TO 
DEVELOPMENT FUND FOR IRAQ 
 
REF: A. 03 ZAGREB 2408 
 
     B. 03 STATE 291321 
 
    SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY. 
 
1.  (U) THE COUNTY COURT OF ZAGREB SENT THE EMBASSY A COPY OF 
ITS DECISION, DATED JANUARY 27, ORDERING THE TRANSFER OF 
FUNDS FROM THE ACCOUNT OF THE CENTRAL BANK OF IRAQ IN 
PRIVREDNA BANKA ZAGREB TO THE DEVELOPMENT FUND FOR IRAQ. 
ACCORDING TO THE RESOLUTION, THE FUNDS ARE TO BE TRANSFERRED 
VIA FEDWIRE TYPE CODE 15 THROUGH FRBNY (PRESUMABLY FEDERAL 
RESERVE BANK, NEW YORK) ABA ROUTING NUMBER 0210-8677-3 IRAQ 
DEVELOPMENT FD. 
 
2.  (SBU) WHILE WE HAD BEEN ASSURED IN NOVEMBER BY THE 
MINISTRY OF FOREIGN AFFAIRS AND THE FINANCIAL INTELLIGENCE 
UNIT WITHIN THE MINISTRY OF FINANCE THAT A REQUEST TO THE 
COURT TO TRANSFER THE FUNDS WOULD BE COMPLETED "WITHIN A WEEK 
OR SO," IT APPEARS THAT THE STATE ATTORNEY'S OFFICE DID NOT 
WRITE TO THE COURT UNTIL JANUARY.  ONCE AGAIN THE MINISTRY OF 
FOREIGN AFFAIRS HAD TO DRAFT A LEGAL OPINION ESTABLISHING THE 
BASIS FOR THE SEIZURE AND TRANSFER OF FUNDS.  THE MFA ARGUED 
THAT, SINCE CROATIA WAS A SIGNATORY TO THE UN CHARTER AND 
CROATIA'S CONSTITUTION STATES THAT INTERNATIONAL AGREEMENTS 
BECOME LAW UPON CROATIA'S RATIFICATION OF THOSE AGREEMENTS, A 
UNSC RESOLUTION HAS THE FORCE OF LAW IN CROATIA.  THIS IS THE 
ARGUMENT THAT WAS SUCCESSFULLY USED TO FREEZE 
TERRORIST-RELATED ASSETS LAST YEAR.  OUR CONTACTS TELL US 
THAT WHEN CERTAIN AMENDMENTS TO CURRENT LAW ARE ADOPTED WHICH 
EXPLICITLY STATE THAT UN RESOLUTIONS BECOME DOMESTIC LAW, THE 
ASSET SEIZURE PROCESS SHOULD BECOME SIMPLER AND FASTER. 
FRANK 
 
 

 
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