| |
|
| "Melli Bank plc is disappointed that the Court of First Instance of the European Communities has dismissed its challenge of the decision to freeze the funds and economic assets of Melli Bank plc.
"Melli Bank plc strongly believes that the decision to freeze its assets is unfair and unlawful. It has asked the Council of the European Union to review the decision to freeze its assets and Melli Bank plc is also considering an appeal to the European Court of Justice against the decision of the Court of First Instance.
"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 it 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.
"Melli Bank plc deeply regrets the imposition of sanctions against it. Such sanctions are not only unjustifiable, but have caused and will continue to cause considerable disruption, inconvenience and concern to the Bank's customers, as well as significant financial and job losses both here in the UK and in Hong Kong."
Ends |
Melli Bank plc is a UK incorporated bank, authorised and regulated by the Financial Services Authority and conforms to all UK accounting standards and disclosure requirements. The Bank opened its only overseas branch in Hong Kong in April 2006. Melli Bank plc is a wholly owned subsidiary of Bank Melli Iran. Melli Bank plc was incorporated in the UK in 2001 and began banking operations in the UK on 1 January 2002.
Melli Bank plc believes that it should not be included in the sanctions introduced by the EU and the UK for the following reasons: | | 1 | There have never been any allegations of wrongdoing against Melli Bank plc and, in particular, Melli Bank plc's assets have not been frozen because it is alleged to have been involved in nuclear proliferation. Melli Bank plc has at all times acted strictly in accordance with the existing sanctions regime. An independent report by a leading firm of accountants has confirmed that, with the exception of certain transactions with entities owned or controlled by Bank Sepah, for which licences have been granted by HM Treasury, its review did not reveal the existence of any trading relationships between Melli Bank plc and companies or individuals listed in the Annexes to the various applicable EU legislation and UN resolutions regarding Iranian entities. | | 2 | Sanctions against Melli Bank plc are disproportionate. Introducing sanctions against Melli Bank plc will not assist the aim of the sanctions. Melli Bank plc, as a UK bank, is legally and functionally distinct from its parent. It complies with all relevant sanctions and will continue to do so and has a good record of compliance with its regulators in the UK. This record of compliance includes all UK, EU and UN sanctions imposed on Iranian individuals and entities. Including Melli Bank plc in sanctions therefore does not make the sanctions any more effective in controlling nuclear proliferation. | | 3 | The United Kingdom Government and the European Union has put forward purported reasons for sanctioning Melli Bank plc. These are essentially that Melli Bank plc's parent, Bank Melli Iran, has provided financial support and services for entities which are alleged to be involved in Iran's nuclear and missile programmes. However, not only has no evidence been provided of such allegations, but Bank Melli Iran has categorically denied these allegations and is challenging them in the Court of First Instance of the European Communities. | | 4 | Sanctions against Melli Bank plc are also discriminatory. Melli Bank plc is a UK bank. We believe that there is no justification for Melli Bank plc to be treated differently from other UK banks. In addition, Melli Bank plc's shareholders are Iranian but other UK and EU companies have Iranian shareholders and are not subject to sanctions. |
|
Melli Bank plc
One London Wall
11th Floor
London EC2Y 5EA
+ 44 20 7600 3636 |
|
|
|
