UK Cuts Ties with Iranian Banks After IAEA Report

The UK has imposed tough new financial restrictions against Iran and has cut off all financial ties with Iranian banks, said a statement from the Foreign Office.

This follows the International Atomic Energy Agency’s (IAEA) latest report on Iran, which highlights fresh concerns about the possible military dimensions of Iran’s nuclear programme.

This is the first time that the UK has used these powers to cut an entire country’s banking sector off from its financial sector.

Foreign Secretary William Hague said:

“The IAEA's report last week provided further credible and detailed evidence about the possible military dimensions of the Iranian nuclear programme. Today we have responded resolutely by introducing a set of new sanctions that prohibit all business with Iranian banks.

“We have consistently made clear that until Iran engages meaningfully, it will find itself under increasing pressure from the international community.  The swift and decisive action today coordinated with key international partners is a strong signal of determination to intensify this pressure.”

From 15:00 Monday 21 November 2011, all UK credit and financial institutions are required to cease business relationships and transactions with all Iranian banks, including the Central Bank of Iran, and their branches and subsidiaries.

"Iran’s activities that facilitate the development or production of a nuclear weapon pose a significant risk to the national interests of the UK and countries across the region," said the foreign office.

Chancellor George Osborne said:

“I have today taken action to impose further financial restrictions against Iran. This follows the International Atomic Energy Agency’s report uncovering evidence of Iran’s development of nuclear weapons technology. It is also a response to calls from the Financial Action Task Force for countries to strengthen safeguards to protect their financial sectors from money laundering and financing of terrorism risks emanating from Iran.

“We believe that the Iranian regime’s actions pose a significant threat to the UK’s national security and the international community. Today’s announcement is a further step to preventing the Iranian regime from acquiring nuclear weapons.”

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