US embassy cable - 05ABUDHABI4541

S E C R E T ABU DHABI 004541 
 
SIPDIS 
 
NOFORN 
 
STATE FOR T U/S JOSEPH, PMCNERNEY 
EB/ESC/TFS FOR JSALOOM, NP/RA FOR CRUSSELL 
S/CT FOR TKUSHNER, MHAWTHORNE, GNOVIS 
NSC FOR JZARATE, DSTEPHENS 
TREASURY FOR SLEVEY, RWERNER 
MANAMA FOR JBEAL 
 
E.O. 12958: DECL: 11/01/2015 
TAGS: PARM, KNNO, KTFN, ETTC, AE 
SUBJECT: UAE CENTRAL BANK RAISES INDEMNIFICATION -- AGAIN 
 
REF: A. ABU DHABI 4103 
     B. ABU DHABI 4230 (NOTAL) 
     C. SECSTATE 13956 (NOTAL) 
     D. ABU DHABI 4468 
 
Classified By: (U) Classified by Ambassador Michele J. Sison, for reaso 
ns 1.5 (b) and (d). 
 
1. (U) This is an action request, please see para 5. 
 
2. (S/NF) OFAC analyst Andreas Morgner and IRS Special Agent 
Raymond Orzel met with UAE Central Bank and Ministry of 
Interior (MoI) officials on October 30th to discuss the UAE 
connections of international arms trafficker Victor Bout. 
Morgner and Orzel outlined the case against Bout and noted 
that his network continues to use the UAE as a base for its 
aircraft.  Abdulrahim al-Awadi, Director of the Central 
Bank's Anti-Money Laundering and Suspicious Cases Unit 
(AMLSCU), began the meeting by strongly reiterating the 
Central Bank Governor's previous requests for indemnification 
to cover the Central Bank in the event the Central Bank is 
sued for freezing assets based on a U.S. request (refs A-C). 
Al-Awadi stated flatly that, "without indemnity we cannot act 
on any U.S. request."  He also declared that the USG must 
take all future requests through the Ministry of Foreign 
Affairs and the Ministry of Justice -- "do not take them 
directly to the Central Bank."  He continued, "If you give 
them (the MFA and the MoJ) information, then they will act 
within the laws and contact us, but without evidence, we 
cannot act on any U.S. request." 
 
3. (C) During the meeting at the MoI, Lt. Col Murad Mohammed 
Murad pledged to cooperate and investigate Bout's use of the 
UAE.  He requested details on the individuals and companies 
operating in the UAE in Arabic.  Embassy will translate the 
descriptors on OFAC's April 26, 2005 additions that relate to 
Victor Bout's network to the SDN list and provide it to the 
MoI. 
 
Comment and Action Request 
-------------------------- 
 
4. (S/NF) The UAE Central Bank has been requesting indemnity 
-- or some form of legal cover -- for over a year.  Senior 
USG officials have told the Central Bank Governor that the 
U.S. cannot provide indemnity, but the Governor recently 
indicated that he would welcome a letter providing a legal 
opinion of how UNSCR 1540 obligates the UAE to freeze 
proliferator assets (refs A and B).  Central Bank officials 
raise this issue at every single meeting with a U.S. 
interlocutor. 
 
5. (U) Action Request.  As requested ref D, please forward to 
Embassy a letter we may provide to the Central Bank laying 
out USG legal opinion on how UNSCR 1540 obligates the UAE to 
freeze proliferator assets.  End action request. 
SISON