In a welcome development, Barclays have severed its business ties with two Iranian banks who held offices in the UK.
The banks in question, Melli and Saderat, have been accused by the US of having links to the proliferation of weapons of mass destruction and financing terrorism respectively.
Despite Melli and Saderat banks not having broken any laws in the UK, and having avoided punishment as part of Treasury and European Union sanctions, Barclays were able to act thanks to the anti-Iran sanctions that form part of the United States’ Patriot Act.
Both Iranian banks are listed on the US government Office of Foreign Assets Control list of specially designated nationals (SDNs), and in a letter leaked to The Times, a senior Barclays lawyer explained that they have “a policy of not conducting business with people or entities which are publicly designated SDNs and in line with that Barclays is unable to receive payments from or undertake other business which involves Melli or Saderat”.
Employees of the Iranian banks affected by this development have had their accounts closed and funds returned to the account holder.
Melli and Saderat banks strongly deny any allegations of wrongdoing.
