06 February 2024 , 09:36
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Santander UK and Lloyds have denied breaking US sanctions after reports suggested they provided accounts to British companies linked to an Iranian petrochemical firm.
The Petrochemical Commercial Company (PCC), tied to the Iranian state, allegedly used UK front companies to move money globally, according to documents seen by the Financial Times. Lloyds and Santander UK reportedly provided bank accounts to two of these companies.
PCC UK has been under US economic sanctions since 2018, a tactic used by governments to deter aggressive actions or breaches of international law. PCC UK is connected to Aria Associates, a company registered in central London. Documents suggest Aria Associates had a bank account with Lloyds.
However, Aria Associates is not subject to sanctions and PCC UK is not sanctioned by the UK Government. The majority owner of the business is Mohammad Ali Rejal, who holds a senior position at PCC UK and has communicated with company officials in Iran, as reported by the FT and PA news agency.
Pisco UK, a Surrey-registered company, is reportedly run by British national Abdollah Siavash Fahimi on behalf of PCC. The Financial Times suggests that Pisco UK and Aria Associates are fully owned by PCC UK.
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However, this hasn't been independently confirmed. Santander UK's spokesperson stated: "We have policies and procedures in place to ensure we comply with sanctions requirements and will continue to engage proactively with relevant UK and US authorities."
Lloyds also denied any breach of sanctions, stating: "We are committed to adhering to all legislative and regulatory requirements as they relate to economic crime. We are not permitted to comment on individual customers." Shares in Banco Santander and Lloyds fell on Monday.
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