U.S. imposes sanctions on Iranian-owned bank in Germany

The U.S. government announced on Tuesday sanctions against an Iranian-owned bank in Germany for actively facilitating business with Iranian banks and handling billions of U.S. dollars worth of transactions on their behalf in support of Iran's nuclear or missile programs.

The U.S. Department of the Treasury accused the Hamburg-based Europaisch-Iranische Handelsbank (EIH) of providing financial services to Bank Mellat, Persia International Bank, the Export Development Bank of Iran and Post Bank of Iran, all previously designated by the U.S. and the European Union. Examples cited by the Treasury include a transaction between EIH and the Export Development Bank of Iran which enabled Iran's missile programs to purchase more than three million dollars of material and an almost one million dollars in business involving an Iranian Weapons of Mass Destruction proliferator facilitated by EIH and Bank Mellat.

Accusing EIH of "acting as a key financial lifeline for Iran" that helped proliferate weapons of mass destruction, the Treasury' s Under Secretary for Terrorism and Financial Intelligence Stuart Levey said that "as international sanctions tighten, Iran will find it increasingly difficult to find banks like EIH that will cooperate with it."

"Treasury will continue to target any bank, wherever located, that supports Iran's nuclear or missile programs," he added.

Once sanctioned by the Treasury, banks are isolated from the U. S. financial system, and U.S. banks are banned from trading with them.

The Treasury said that "the United States has closely consulted with the German government in taking action against EIH and is aware that the German government is also taking steps under its national authorities."

The UN Security Council adopted a resolution on June 9 to impose fresh sanctions on Iran after the country continued to defy international calls to comply with its obligations under the International Atomic Energy Agency in relation to its nuclear program.

Iran has been maintaining that its nuclear program is strictly for peaceful purposes. The U.S. rejects it as a cover for developing nuclear weapons and had slapped sanctions on Iran with some Western countries.

Source: Xinhua