Statement by Melli Bank plc following the announcement by the European Union of further sanctions against Iran (24 June 2008) “Melli Bank plc has today received notification that the Bank’s funds and economic assets are to be frozen following the introduction of sanctions against Iranian financial institutions by the European Union. The effect of the sanctions will be to restrict Melli Bank plc, including its overseas branch in Hong Kong, to trading under licence from HM Treasury. “Melli Bank plc is a UK bank and is authorised and regulated by the Financial Services Authority. Melli Bank plc has a good record of compliance with its regulators in the UK. Melli Bank plc has and will always comply in all respects with all applicable laws and regulations, including international sanctions that are in place or may be introduced by the EU or the UK. This includes the UK, EU and UN sanctions imposed on Iranian individuals and entities. “As an independently constituted UK bank, Melli Bank plc is seeking urgent clarification from the EU authorities on the reasons for its inclusion in the sanctions. Melli Bank plc believes that the decision to include it in the sanctions is both disproportionate and discriminatory. Melli Bank plc will be making an application before the UK courts for judicial review and seeking an interim injunction to suspend the application and/or operation of the EU decision in the UK. Melli Bank plc will also be initiating proceedings before the European Court of First Instance to challenge the legality of this decision. In the interim, Melli Bank plc will work with the UK authorities to comply with the sanctions pending a decision by the Courts. “Melli Bank plc deeply regrets the decision by the UK Government and the EU to include the Bank in the sanctions. This decision is not only unjustifiable but will cause considerable inconvenience and concern to the Bank’s customers and staff both here in the UK and in Hong Kong.”