Turkish Banks Cut Links with Iranian Bank Due to Pressure from USA

Pressure from the United States on Turkish banks about Iran is having a profound effect, according to the Reuters news agency.

Reuters reported Wednesday that Iran’s Bank Mellat, which has three branches in Turkey, is “unable to operate in Turkey,” quoting head of the bank’s Turkish unit, Younes Hormozi. All Turkish banks have cut links with Mellat due to U.S. pressure, reported the agency.

Meanwhile, the U.S. Treasury Department on Tuesday identified an Iranian bank that it said was “used by that country’s government to evade international sanctions aimed at preventing the proliferation of weapons of mass destruction.”

State-owned Bank of Industry and Mines provided financial services to Bank Mellat and Europaeisch-Iranische Handelsbank, two Iranian banks previously designated in connection with proliferation activities, the Treasury said, according to Bloomberg News.

The Bank of Industry and Mines has participated in a scheme since July 2010 to circumvent the sanctions, the Treasury claimed. Europaeisch-Iranische Handelsbank then distributed payments to Bank Mellat’s customers in Europe, according to the statement.

In August 2010, Treasury issued the Iran Financial Sanctions Regulations to prohibit or impose conditions on foreign financial institutions with access to U.S. institutions.

May 18, 2011

SOURCE: TURKISH DAILY NEWS