Banking

In 2011, the Central Bank of Iran maintained an account at IBK in Seoul containing
the equivalent of over $1 billion in KRW (the "CBI Won Account"). The purpose of this account was to permit limited forms of trade between Korea-based entities and Iran, including the import of Iranian oil to Korea. The CBI Won Account at IBK was subject to several limitations. Among other things, the account could be used for transactions involving only certain, permissible types of goods, including crude oil exports from Iran. The CBI Won Account could also be used to compensate Korean businesses who were owed compensation from Iran for certain types of limited and permissible commercial trade and sales actions. All other transactions — including
transactions for weapons — were specifically prohibited. Additionally, transactions involving the CBI Won Account could not involve USD." (U.S. Department of Justice, "Indictment," 6/3/2020). 

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"New York authorities fined a South Korean bank over long-running gaps in its defenses against money laundering, after the lender’s Manhattan branch was used to launder cash for Iran.

The state-backed Industrial Bank of Korea must pay $35 million for lapses dating back to 2010, which centered on failing to install and maintain an adequate transaction-monitoring system, New York state’s Department of Financial Services said in a document reviewed by The Wall Street Journal. A spokesman for the bank said he had no immediate comment." (The Wall Street Journal, "New York Fines South Korean Bank Used for Iran Payments," 4/20/2020). 

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"stopped guaranteeing transitions and buying usance letters of credit for companies doing business with Iranian firms in response to the U.S.'s renewed sanctions against iran." (“Woori Bank and IBK partially suspend financial transactions with Iran,” Pulse (South Korea), June 19, 2018.) 

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"The US Treasury Department accused the Industrial Bank of Korea (IBK) branch in New York illicit arms transactions for Iran, the Korea Times reported on Thursday.
The bank denied the accusation that may lead the U.S. regulator to levy heavy penalties on it, like closing down its branch in New York. The US Treasury Department has submitted a report to the Korean financial regulator recently on its inspection results on a $1 billion illicit money transfer to Iran by a Korean-American businessman in 2012 which involved an escrow account at IBK’s New York branch." (March 2018)

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“South Korea is set to become the second Asian nation to make a payment to Iran for crude oil imports under an interim nuclear deal…Japan became the first of Iran's oil buyers to make a payment to Iran under the eased sanctions earlier this month. It was not clear the amount to be transferred but the Iranian central bank was holding up to $5.6 billion in two won-denominated accounts, one at Woori Bank and the other at Industrial Bank of Korea as of late 2013, according to one of the sources. A second source who confirmed the money transfer added the payment would be made by the two Korean banks next month - one part on early March and the other later in the month…State-owned Woori Bank and Industrial Bank of Korea declined to comment on the money transfer…Bank of Korea and South Korean finance ministry officials contacted by Reuters said no decision had been made about money transfers to Iran.” (Reuters, “South Korea set to make oil payment to Iran - sources,” 2/12/14)

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“Under penalty of expulsion from the U.S. banking system, Iranian crude customers such as China, Japan and India will be restricted to using their own currencies for the purchases, starting today. Importers will be compelled to keep the payments in escrow accounts that Iran can use only for locally sourced goods and services, in what will amount to barter arrangements…The new blockage on remittances will add to financial restrictions the U.S. imposed last year that curtail Iran’s access to dollars, euros and other hard currencies. Sanctions have already forced it into barter arrangements with China, its largest oil customer…South Korean buyers have been paying for Iranian crude in local won, through two accounts that Iran’s central bank opened in 2010 at the Industrial Bank of Korea and Woori Bank…South Korea’s exports to Iran of goods such as iron, steel and petrochemicals increased 3.2 percent to $6.3 billion last year, while imports dropped 25 percent, to $8.5 billion, according to customs data. Oil made up 99 percent of the goods that Japan and South Korea imported from Iran.” (Bloomberg, “Iran Faces Oil-Cash Squeeze as U.S. Bolsters Sanctions,” 2/6/14)

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"South Korean prosecutors have detained and charged a Korean American with the illegal transfer of a staggering 1.09 trillion won ($1.02 billion) in Iranian money frozen in South Korea under international sanctions, the lawyers said on Friday. The Seoul Central District Prosecutors' Office said a 73-year-old man, identified only by his family name, Chung, was suspected of making fraudulent transfers in 2011 from the Iranian central bank's won-denominated account at a South Korean bank by using fake invoices for payment. Prosecutors marveled at the scale of the withdrawals, indicating they believed there had to be more than one person involved. The prosecutors' office said those involved took advantage of a banking procedure that was now more tightly supervised... The prosecutors' office and the Industrial Bank of Korea (IBK) confirmed media reports that identified the state-owned lender as the financial institution that held the Iranian central bank account. IBK had received a payment order from the Iranian central bank, the bank and prosecutors said. It believed the order to be authentic because Chung had attached authorization from the Bank of Korea and a government agency that tracks exports of goods to countries under international sanctions, the prosecution said." (Reuters, "South Korea reveals staggering $1 billion transfer fraud in Iranian money," 1/25/13)

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"In response, Rabobank and Société Générale say they have stopped servicing Iran deals or curbed their trade finance. According to Iranian trade professionals, Korea's Woori Bank and Industrial Bank of Korea have done the same. The Korean banks could not be reached for comment." (The Wall Street Journal, "Willing Banks Find Profits in Legal Trade With Iran," 4/8/2012)

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Industrial Bank of Korea is one of South Korea's largest banks. It is a publicly-owned institution specializing in loans for small and medium-sized corporations. IBK is also involved in consumer banking, investment banking, and asset management (Google Finance).

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In October of 2010, the South Korean government appointed IBK to "finance commerce with Iran and revive business ties damaged by sanctions." The deal allows the Iranian central bank to deposit proceeds from oil sales at IBK, which will use the funds to pay South Korean firms exporting to Iran. South Korean trade with Iran amounts to $10 billion annually (Financial Times). 

On June 30, 2019, New Jersey listed Persia International Bank on its state list of entities determined, based on credible information, to be engaged in prohibited activities in Iran.

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• Conducts business with Iranian banks
• Operates banks in Iran

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"The European Union will re-impose asset freezes on several Iranian companies, annulled this year by court order, even as world powers appear close to a breakthrough deal with Tehran over its contested nuclear program. EU diplomats said the move was to re-establish sanctions already imposed, rather than increasing pressure on Iran. Any new sanctions could risk scuppering a deal that global powers hope to reach with Iran at talks that start next Wednesday…The EU decision, taken by senior officials on Thursday, must still be approved by EU governments later this week, diplomats told Reuters. It covers Persia International Bank, Export Development Bank of Iran and Bank Refah Karagan, among others. It aims to counter mounting litigation by hundreds of people and companies from Iran after several legal challenges succeeded in quashing sanctions this year…The EU has in the past appealed against sanctions being quashed, for example after the court overturned sanctions on Bank Mellat and Bank Saderat, among the biggest private banks in Iran, earlier this year." (Reuters, "EU to re-impose Iran sanctions quashed by court," 11/14/13)

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"The European Union is moving to a new approach in reinforcing its Iran sanctions regime in a bid to prevent legal challenges by companies from undermining the West's efforts to counter Tehran's nuclear program. In recent weeks, the EU has informed more than a dozen companies with ties to Iran that have won rulings against previous restrictions that it plans to target them with new sanctions, an EU official said…Among the letters the EU recently sent to more than a dozen firms with ties to Iran was one to London-based Persia International Bank PLC. EU officials stated they would return the bank to the bloc's sanctions list, according to the Oct. 10 letter…The bank won a legal challenge Sept. 6, when the EU's second-highest court ruled that the EU had erred in sanctioning the firm on the basis that 60% of its share capital was owned by the already-sanctioned Bank Mellat, Iran's largest private bank. In its ruling, the court said this fact alone didn't 'justify the adoption and/or maintenance of the restrictive measures.' In its letter to Persia International Bank, the EU said it intended to place the bank on its sanctions list on the basis that it is fully owned by two sanctioned banks—Bank Mellat and Bank Tejarat…Richard Blakeley, a lawyer representing Persia International Bank said the EU sanctions are 'unlawful, unfair and are causing significant damage to the bank's business and reputation.'" (Wall Street Journal, "EU Shifts Tactics to Bolster Iran Sanctions," 10/27/13)  

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"A European Union court ruled Friday against the bloc's asset freeze on seven companies allegedly linked to Iran's nuclear program, adding to concerns that legal challenges could undermine Western efforts to pressure Tehran over its nuclear policy . . . Among them were the state-owned Iran Insurance Co., the country's largest insurer; the state-owned Post Bank; Persia International Bank PLC, which is U.K.-based but 60% owned by Bank Mellat, a private Iranian bank; and the Iranian Offshore Engineering & Construction Co., one of the country's largest contractors in oil and natural gas development." (Wall Street Journal, "Court Hands EU New Setback on Iran Sanctions," 9/6/13)

"A few days ago, Emirates NBD, one of the largest banking groups in the Middle East in terms of assets, sent a letter to its Iranian customers to notify them that their accounts do not match the bank’s portfolio criteria and gave them a 30-days deadline to organize their affairs and close their accounts." (November 14, 2017)  

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Emirates NBD Bank l is one of the companies listed as a speaker at the HR Trends Summit taking place from October 18-19, 2016 in Tehran, Iran. (Speakers).
 

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Noted for conducting business with Iranian and U.S. banks. (Avi Jorisch, "Iran's dirty banking," 2010)

Noted for conducting business with U.S. and Iranian banks. (Avi Jorisch, "Iran's dirty banking," 2010)

According to a February 2, 2022 US congressional report, "the [U.S.] Justice Department filed charges in October 2019 against Halkbank for an unspecified amount for allegedly helping Iran evade U.S. sanctions."

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"Turkey's Halkbank shares climbed more than 8% on Monday after a U.S. appeals court put its prosecution by the federal government, for allegedly helping Iran evade American sanctions, on hold while the bank appeals to the U.S. Supreme Court." (Reuters, "Turkey's Halkbank shares jump after U.S. prosecution put on hold," 1/17/22).

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"A U.S. judge on Thursday refused to dismiss an indictment accusing state-owned Turkish lender Halkbank HALKB.IS of helping Iran evade American sanctions. U.S. District Judge Richard Berman in Manhattan rejected Halkbank’s claim that the Foreign Sovereign Immunities Act shielded it from prosecution, saying that law did not appear to grant immunity in criminal proceedings. He also said an exception for commercial activity “would clearly apply and support the Halkbank prosecution,” citing the bank’s interactions with U.S. Treasury Department officials and its alleged laundering of more than $1 billion through the U.S. financial system." (Reuters, "Turkey's Halkbank Must Face U.S. Indictment Over Iran Sanctions, Judge Rules," 10/2/2020)

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"Halkbank will ask the U.S. judge overseeing a criminal case accusing it of helping Iran evade American sanctions to recuse himself, a lawyer for the Turkish bank said on Tuesday. The lawyer, Robert Cary, notified U.S. District Judge Richard Berman of Halkbank’s intention at a hearing, without providing a reason. Berman set a July 14 deadline for a formal request. Halkbank and its lawyers declined to comment. U.S. prosecutors have accused Halkbank and bank executives of using money servicers and front companies in Iran, Turkey and the United Arab Emirates to evade sanctions. (Reuters, "Turkey's Halkbank to seek removal of U.S. judge in Iran sanctions case," 6/30/2020).

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"Turkey’s state-owned Halkbank pleaded not guilty Tuesday to U.S. charges that the bank helped Iran evade sanctions on billions of dollars in oil funds. The plea, entered on behalf of the company by its lawyer, Robert Cary, comes after months of legal wrangling over the bank’s response to allegations of fraud, money laundering and conspiracy. The arraignment was conducted by U.S. District Judge Richard Berman in Manhattan by teleconference after many in-person hearings were halted over coronavirus fears." (Bloomberg, "Turkey’s Halkbank Pleads Not Guilty in Iran-Sanctions Case," 3/31/2020).

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"Turkey’s state-owned Halkbank has agreed to enter a formal plea of not guilty to criminal charges that it helped Iran evade U.S. sanctions, backing down from its previous refusal to answer the allegations, a lawyer for the bank said on Tuesday." (Reuters, "Turkey's Halkbank agrees to respond to U.S. criminal charges," 2/25/2020).

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"A federal appeals court granted a temporary halt in the U.S. prosecution of Turkish lender Halkbank over sanctions violation charges while it weighs other requests by the bank. Halkbank had previously sought to pursue a dismissal of the case without entering a plea on the charges. A judge denied the request, and the bank is appealing that ruling. A three-judge panel of the Second Circuit Court of Appeals will weigh the request on an expedited basis. Prosecutors have deemed the bank a fugitive from justice, asking a judge to hold it in contempt and impose fines until it begins answering the charges." (Bloomberg, "Halkbank Wins Reprieve in U.S. Prosecution Over Iran Sanctions," 2/3/2020).

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"The U.S. government said on Tuesday that Turkey’s state-owned Halkbank (HALKB.IS) should be subjected to escalating fines totaling millions of dollars until it responds in court to criminal charges it helped Iran evade U.S. economic sanctions. In a filing in Manhattan federal court, prosecutors said Halkbank should be fined an initial $1 million a day for contempt of court, and which could double each week to counter the bank’s “obstinacy” in refusing to defend itself in court." (Reuters, "U.S. seeks big contempt fines against Turkey's Halkbank," 1/21/2020).

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"A U.S. judge threatened to hold Turkish bank Halkbank in contempt and impose fines for refusing to acknowledge the sanctions evasions charges filed against it by federal prosecutors in New York. The state-owned bank was indicted in October for allegedly participating in a scheme to help Iran access $20 billion in frozen oil revenue. Since then, Halkbank and its lawyers have refused to accept service of the indictment or the legal summons to appear in court, and neither its lawyers nor executives have entered a plea on its behalf." (Bloomber, Halkbank Threatened With U.S. Contempt In Iran Sanctions Case, 12/10/2019).

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"US prosecutors on Tuesday charged Turkey’s majority state-owned Halkbank (HALKB.IS) with taking part in a multibillion-dollar scheme to evade US sanctions against Iran - an indictment that may complicate tension between NATO allies Washington and Ankara. The charges unsealed in federal court in Manhattan mirror those against one of Halkbank’s former executives, Mehmet Hakan Atilla, who was found guilty and sentenced to prison after a trial in the same court last year." (Asharq Al-Awsat, "US Accuses Turkey's Halkbank of Scheme to Evade Iran Sanctions," 10/16/2019).

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"The Justice Department on Tuesday sharply escalated economic pressure on Turkey by filing fraud and money-laundering charges against the country’s second-largest state-owned bank, [Halkbank] accusing it of helping Iran evade United States sanctions." (NY Times, "U.S. Indicts Turkish Bank on Charges of Evading Iran Sanctions," 10/15/2019).

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"Trade sources said Turkey’s Halkbank (HALKB.IS) - one of the main banks that Iran has relied on for such humanitarian trade - had not been able to process payments fast enough because of the complexity of the process and in some cases did not complete transactions with suppliers. Halkbank declined to comment." (Reuters, "Exclusive: Ships with one million tonnes of grain stuck outside Iran's ports in payment crisis," 10/2/2019). 

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"A US jury has found a Turkish banker of Halkbank guilty of helping Iran evade US sanctions, after a nearly four-week trial  between the United States and Turkey. Prosecutors had accused Atilla of conspiring with a gold trader, Reza Zarrab, and others to help Iran escape sanctions using fraudulent gold and food transactions. Zarrab pleaded guilty and testified for the prosecutors." (January 2018)
 

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Despite hopes of a new dawn for Iran's economy after nuclear-related sanctions were lifted, major Western banks are reluctant to do business with the Islamic republic for fear of US retribution. President Hassan Rouhani has said that to reach the target of eight-percent growth needed to modernise the industrial sector and relaunch the hobbled economy, Iran needs up to $50 billion in foreign investment every year. But without the big foreign banks, that looks impossible. "For the moment, the little European banks have agreed to work with us," said Parviz Aghili, head of the private Middle East Bank in Tehran. They include banks from Italy, Austria, Switzerland, Germany and Belgium, he said without naming them. "But not a single medium-sized or big bank has so far agreed to do it," he added... The limited number of institutions that do deal with the Islamic republic include Raiffeisen Bank and Erste Bank from Austria, Mediobanca and Banco Popolare of Italy, Germany's EIH, KfW and AKA banks, Belgium's KBC, ING of the Netherlands and Turkey's Halk, according to a banking expert in Tehran. "These banks have established working relations with the Iranian banks to open letters of credit for fairly small sums of 10, 20 or 50 million dollars." But they lack the resources to finance big projects like the deal struck between Iran and European aircraft manufacturer Airbus for 118 airplanes, or oil and gas development projects, the expert said. (AFP, "Iran banking hobbled by Western reluctance to engage," 9/13/2016).

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"Iran is seeking partnerships with Turkish companies for highway, airport and railway projects worth $10 billion over the next three to five years, Iranian Ambassador to Turkey Ali Reza Bikdeli said in an interview in Ankara. 'We have many projects,' Bikdeli said late Monday. 'We are ready to award these projects to internationally-proven Turkish companies.' ... Contracts to Turkish corporations would be awarded through work partnerships with Iranian companies and without bids, Bikdeli said. Ankara-based construction company Bergiz Insaat, in a joint venture with an Iranian state company, has already begun building a $1 billion highway project and an $800 million subway in northwestern Iran, he said. Turkey’s state-run TC Ziraat Bankasi AS should also do business with Iran, Bikdeli said. Turkish lender Turkiye Halk Bankasi AS handles payments for Iranian energy transactions." (Bloomberg, "Iran's Envoy: $10 Billion Projects Await Turkish Companies", 6/23/15)

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"Indian oil refiners will clear around 6 billion euros ($6.7 billion) of outstanding debt to Iran through Turkey's Halkbank.”  (Reuters, “Indian oil payment backlog to Iran to be cleared soon - Iranian official,” 6/1/2016)

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“Turkey's state-owned Halkbank is expected to continue processing payments for Iranian oil imports to Turkey, U.S. Treasury Undersecretary David Cohen said on Monday. ’Halkbank has for some time been involved in handling oil payments for importing oil from Iran into Turkey and we expect that to continue,’ David Cohen, Undersecretary for Terrorism and Financial Intelligence told reporters.’ We talked more broadly about sanctions ... on the banking sector so that there is good clarity on the scope of sanctions that remain in effect,’ Cohen said after his meeting with Foreign Ministry Undersecretary Feridun Sinirlioglu.” (Reuters, “Turkey's Halkbank seen continuing to handle Iran oil payments - U.S.,” 1/27/14)

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"Turkey's state-owned Halkbank, whose general manager has been detained as part of a corruption inquiry, will keep processing payments for Turkey's oil and gas imports from Iran, Turkey's Deputy Prime Minister Ali Babacan said on Wednesday. ’The state of Iran has accounts with Halkbank and we deposit the payments for the oil and gas purchased to these accounts ... Halkbank will continue to carry out this function,’ Babacan told Bloomberg HT Television. Halkbank general manager Suleyman Aslan was among dozens of prominent business people, the sons of three cabinet ministers, and state officials questioned as part of a corruption inquiry swirling around Prime Minister Tayyip Erdogan's government…Halkbank has repeatedly said its dealings with Iran are entirely lawful, but its Iranian business ties had drawn Western criticism amid U.S.-led efforts to curb Tehran's disputed nuclear programme. Turkey has bought natural gas and oil from Iran through an indirect system whereby Iranian exporters received payment in Halkbank lira accounts and used that money to buy gold. The bulk of that gold was then been shipped from Turkey to Dubai, where Iran could import it or sell it for foreign currency. Halkbank said last month that the gold sales had stopped on June 10, in line with a July ban. Since then, sources say, Iranians have bought mostly food and medicine with the funds.” (Reuters, “Halkbank to keep processing Iran energy payments for Turkey -Babacan,” 1/8/14)

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“An unfolding corruption scandal in Turkey has uncovered transactions that may have allowed Tehran to circumvent harsh U.S. and E.U. sanctions—a revelation that could destabilize Obama’s nuclear deal and threaten the government of Prime Minister Erdogan. A massive unfolding corruption scandal in Turkey—which has already forced the resignations of three government ministers and threatens to upend the Islamist government of Prime Minister Recep Tayyip Erdogan— is fast acquiring an international dimension amid accusations that Iran is enmeshed in Ankara’s political crisis…The first hint of the Iranian angle in the corruption probes launched by Turkish police in the face of government obstruction came before Christmas when a complicated oil-for-gold deal between Turkey and Iran was unmasked.  The investigators didn’t set out to uncover the sanction-busting oil deal but say they were led to it by following a trail of cash bribes. An Iranian businessman and gold dealer, Reza Sarraf (also known as Reza Zarrab), whom police have accused of bribing the Economic Minister while organizing transactions from Iran worth $120 billion, was arrested last week. So, too, the CEO of the state-owned Turkish financial institution Halkbank, who was reportedly found to have more than $4 million of cash stuffed in shoe-boxes in his home. According to Turkish investigators, both men were at the center of a complex deal in which Iran sold oil and natural gas to Turkey for cash payments that were deposited in an account held at Halkbank. In order to circumvent international money-transfer sanctions on Iran, the cash deposits were then allegedly converted into gold that Turkey exported to Tehran, often via Dubai. Police reports filed with Turkish prosecutors estimate that in the past three years alone, $8 billion in gold was transferred to Iran. American analysts say the number could be higher, to the tune of $13 billion between March 2012 and July 2013 alone. (In July 2013, the U.S. and the European Union tightened loopholes on a ban on gold exports to Iran.) In a statement to the Istanbul bourse, Halkbank stated that all its business transactions with Iran have been transparent and legal, and that it stopped exporting gold to Tehran in June 2013. The broad outlines of the oil-for-gold deal has been known for some time—in April,47 U.S. lawmakers called on Secretary of State John Kerry and Treasury Secretary Jack Lew to sanction Halkbank for its gold trade with Iran.” (The Daily Beast, “Turkey And Iran Accused Of Oil-For-Cash Sanctions Scheme,” 12/28/13)

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"Turkey's state-owned Halkbank, whose chief executive was arrested in connection with a sweeping graft investigation, said on Monday it complied with the law when doing business with sanctions-hit Iran. 'Our bank's business transactions are regularly audited by relevant authorities,' the bank said in a statement. 'The financial intermediation that our bank offers with regard to trade activities with Iran have been conducted in accordance with regulations,' it added. The statement comes after Halkbank chief executive Suleyman Aslan was charged Saturday with taking bribes, while Azerbaijani businessman Reza Zarrab was charged with forming a ring that bribed officials to help disguise illegal gold sales to Iran via Halkbank. Police had also reportedly found $4.5 million in cash stored in shoe boxes in Aslan's home. Twenty-four people have been charged so far in connection with the high-profile investigation including the sons of Interior Minister Muarrem Guler and Economy Minister Zafer Caglayan as well as several top business leaders…Halkbank has come under fire from some quarters in the United States for alleged illegal transactions to Iran. The bank said it stopped transactions to Iran as of June 10 after the United States announced further sanctions against the Islamic republic. Several pro-government media outlets claimed over the weekend that US ambassador to Turkey Francis Ricciardone told some European Union ambassadors that Washington asked the bank to cut its ties with Iran -- the allegations vehemently denied by the ambassador. The reports however infuriated the prime minister who warned he may expel some foreign ambassadors over 'provocative actions,' in remarks considered a veiled threat to Ricciardone." (AFP, "Turkey's Halkbank denies wrongdoing in Iran deals," 12/23/13)

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"Iranian Ambassador to Turkey Ali Reza Bikdeli said in an interview in Ankara yesterday that Halkbank, which handles payments for Iranian energy transactions, would maintain a key role in trade ties. Turkish exports to Iran slumped to $3.4 billion in the first nine months of this year, compared with $9.9 billion in the whole of 2012, as sanctions barred Tehran from accepting gold as payment for oil, according to data from Turkey’s statistics office last month. Precious metals accounted for 66 percent of direct exports to Iran in 2012, the data show." (Bloomberg, "Halkbank CEO, Ministers Sons Said Held in Turkey Graft Probe," 12/17/13)

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"Turkey's state-run Halkbank can only resume processing Indian oil payments to Iran once Western sanctions are officially lifted following an interim deal in Geneva last month, a senior Halkbank official said on Wednesday. 'If the deal signed in Geneva becomes official, we could resume processing Indian oil payments to Iran,' Hakan Aydogan, head of Halkbank's foreign operations department told reporters. 'Despite the breakthrough, the positive developments, there has not been official progress in this,' he said…India started settling 55 percent of its payments for its purchases of Iranian oil in euros through Halkbank in mid-2012. The rest was settled in rupees through India's UCO Bank. But the Halkbank route was halted in February this year when new sanctions prevented Iran from repatriating cash earned from oil it has been able to sell, choking off the biggest revenue stream to its economy." (Reuters, "Halkbank unable to resume processing India payments for Iran oil," 12/11/13)

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"All Turkish banks will be able to make Iranian transactions as sanctions on Iran are eased in the wake of a deal between Tehran and six world powers to curb Tehran's nuclear programme, Turkey's economy minister said on Thursday…State-owned Halkbank, one of Turkey's biggest banks, had continued to process transactions, remaining one of the few to do so in the face of U.S. sanctions targeting financial institutions that dealt with Iran's central bank…Among transactions conducted by Halkbank are payments by Indian refiners to Iran. The refiners used this route until February and these payments could now resume." (Reuters, "Turkish banks to be able to make Iran transactions -minister," 11/28/13)

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"India could step up imports from Iran next month and start transferring billions of dollars owed it for oil as early as next week following a deal to curb Tehran's nuclear programme…Payments could potentially resume through Turkey's state-run Halkbank, a route used until February when it was blocked by sanctions…A government official also said that payments would be expedited once the payment mechanism via Turkey opens up. 'If that Halkbank route opens up ... rather than pushing this to a later date, perhaps this money will go to the Iranians sooner rather than later,' the official with direct knowledge of the matter said." (Reuters, "India ready to start Iran oil cash transfer after deal," 11/25/13)

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"Indian refiners have asked the government to clarify if they can pay Iran for crude in euros after the National Iranian Oil Company (NIOC) requested settlement of some debts through a Turkish bank, Indian officials said on Wednesday…India now owes Iran about $5.3 billion for oil imports, government and refining sources said last week. In mid-October, NIOC informed Indian refiners that Halkbank was ready to restart channelling the payments to Iran, the sources told Reuters, declining to be named due to the sensitivity of the matter. NIOC said it had been informed that Halkbank could be used again by Iran's central bank. It was unclear from the communication from NIOC what had changed that would allow the payments to restart without contravening U.S. sanctions, the sources said…Indian refiners have yet to restart payments via Halkbank and have asked the government for guidance, the sources said." (Reuters, "Indian refiners puzzle over Iran request for euro oil payment-sources," 11/13/13)

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"Several of America’s largest financial institutions are significant shareholders in Turkey’s Halkbank, a majority state-owned lender that has come under fire for enabling so-called 'gold-for-gas' exchanges with Iran that violate U.S. sanctions, according to investment documents obtained by the Washington Free Beacon. Multiple U.S. financial groups currently own shares in the bank, also known as Turkiye Halk Bankasi, which is state-owned and publicly traded. They include the Vanguard Group, Inc., Fidelity Management, J.P. Morgan, T. Rowe Price Associates, Inc., and Principal Management Group, among others... 'It is of great concern that U.S. institutions may be indirectly involved in the sale of Iranian oil for Turkish gold,' said Nathan Carleton, spokesman for United Against Nuclear Iran (UANI), a nonpartisan advocacy group that pressures international companies to cease dealings with Tehran. 'The Iranian regime is conducting these transactions specifically to evade sanctions and fund its nuclear program.' 'The American people don’t want their money going toward Iran business, and once they’re informed of these situations the companies will have to make a choice between U.S. investors or the Iranian regime,' Carleton said. 'Any U.S. entities invested in Halkbank should take immediate action to stop Iranian oil transactions, or divest.' Halkbank has quietly been exchanging large amounts of gold for Iranian crude oil according to multiple reports. These large monetary exchanges have provided Tehran with an economic lifeline while the nation’s energy sector is subjected to international sanctions... Halkbank has also processed monetary deals between Indian oil companies and Tehran, according to Bloomberg. The U.S. has never formally blacklisted Halkbank despite its sanctions-evading practices. While it is legal to own shares in the bank, its behavior directly violates U.S. and U.N. sanctions on Iran. Sanctions experts have speculated the state-controlled Halkbank may have escaped designation due to its political connections... 'The Obama administration relies heavily on Turkey—we have effectively sub-contracted our Syria policy to Ankara. A designation of Halkbank would greatly complicate that relationship,' said Jonathan Schanzer, a former terrorism finance analyst at the U.S. Treasury Department. It is difficult to determine just how much U.S. money is tied up in the Ankara-based bank, though one of the its shareholders, Vanguard, maintains the investments in Halkbank are minimal and not 'political' in nature. At least five Vanguard funds have 'relatively small investments in Turkiye Halk Bankasi as of Dec. 31, 2012,' David Hoffman, a Vanguard spokesman, told the Free Beacon. Halkbank accounted for '0.02 percent to 0.16 percent' of fund assets, according to Hoffman. Vanguard is one of Halbank’s top five Americna investors, owning nearly 2 percent of the lender as of late Friday, according to updated Bloomberg investment information obtained by the Free Beacon. This translates to more than 24 million shares in the bank. Hoffman said Vanguard’s investments in Halkbank are primarily maintained through index funds, or collective investment systems... The other U.S. financial institutions involved in Halkbank either did not respond to a request for comment or declined comment when reached by the Free Beacon last week... Halkbank is listed as one of the top investments in this particular fund... 'Halkbank is one of the worst offenders in the world of U.S. sanctions violations on multiple levels, many of which are not even public,' said a senior Senate aide involved in sanctions legislation... U.S. companies involved in Halkbank have been walking a tightrope, said the Senate source... Carleton said these types of questionable investments are not unusual. 'This sort of thing is sadly rather common, particularly since these deals often have been in place since before Iran sanctions and divestment were as popular as they are now,' he said. 'We regularly find that simply highlighting the issue will result in change.' Recently implemented economic sanctions could make it more difficult for Halkbank to support Iran’s energy sector... 'The Halkbank issue is just one of several for Turkey right now,' Schanzer said. 'Ankara has become one of the top sponsors of the Palestinian terrorist group Hamas.'" (The Washington Free Beacon, "Unsanctioned Investments: U.S. institutions hold shares of Turkish bank engaged in gold-for-oil trades," 2/19/2013)

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"Tighter U.S. sanctions are killing off Turkey's gold-for-gas trade with Iran and have stopped state-owned lender Halkbank from processing other nations' energy payments to the OPEC oil producer, bankers said on Friday. U.S. officials have sought to prevent Turkish gold exports, which indirectly pay Iran for its natural gas, from providing a financial lifeline to Tehran, largely frozen out of the global banking system by Western sanctions over its nuclear program. Turkey, Iran's biggest natural gas customer, has been paying Iran for its imports with Turkish lira, because sanctions prevent it from paying in dollars or euros. Iranians then use those lira, held in Halkbank accounts, to buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran. Halkbank had also been processing a portion of India's payments for Iranian oil. A provision of U.S. sanctions, made law last summer and implemented from February 6, effectively tightens control on sales of precious metals to Iran and prevents Halkbank from processing oil payments by other countries back to Tehran, bankers said. 'Halkbank can only accept payments for Turkish oil and gas purchases and Iran is only allowed to buy food, medicine and industrial products with that money,' one senior Turkish banker told Reuters. 'The gas for gold trade is very difficult after the second round of sanctions. Iranians cannot just withdraw the cash and buy whatever they want. They have to prove what they are buying ... so gold exports will definitely fall,' he said." (Reuters, "Exclusive: Turkey to Iran gold trade wiped out by new U.S. sanction," 2/15/13)

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"In Turkey, state-run lender Turkiye Halk Bankasi AS HALKB.IS +1.25% has been responsible for processing the payments, since the U.S. adopted a measure in January to stop dealing with financial institutions working with Iran's central bank, freezing out private Turkish banks from facilitating payments. Halkbank raised 4.5 billion liras ($2.5 billion) Monday in Turkey's biggest offering in a secondary share sale-a 20.8% stake, according to a statement to the Istanbul Stock Exchange." (The Wall Street Journal, "Turkey Swaps Gold for Iranian Gas," 11/23/2012)

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"Indian refiner Bharat Petroleum Corp (BPCL) has not received Iranian oil since February as it could not open an account with Turkey's Halkbank, which is used by other Indian refiners to pay for oil from Tehran in euros." (Reuters, "India's HMEL bought 2 million barrels of Iranian oil: sources," 10/13/2012)

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"India currently uses Turkey's Halkbank to route dollar payments to Iran. The new set of sanctions being contemplated would close that route." (The Times of India, "US barbs may block India's pay path for Iran oil," 10/7/2012)  

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"Turkey's importance as a trade conduit to Iran has widened to include supplying most of its steel as Turkish banks are among the very few still willing to arrange financing for the sanctions-hit country . . . Banks in traditional steel suppliers such as Turkey, Russia, Ukraine and Europe have withdrawn most financing facilities for deals with Iran, making it extremely difficult for producers and traders to do business with the Gulf country. Yet traders said Turkey's banks, among them state-owned Halkbank, are accepting letters of credit from Iranian buyers. 'There is a facility in place which allows Turkish bank Halkbank, to receive funds from Iran,but only for material that is supplied from Turkey,' said one UK-based steel trader. 'Consequently Turkey almost has a monopoly. 'Halkbank general manager Suleyman Aslan, declined to comment on the issue." (Reuters, "Steell is Turkey's latest helping hand to Iran," 8/16/12)

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"State-run Hindustan Petroleum (HPCL) has made its first payment for Iranian oil in rupees to partially settle its bill for a cargo imported in May, company officials said on Friday, a move that will help New Delhi fix its trade imbalance with Tehran . . . India is Iran's second-largest oil buyer, but has struggled to find ways to pay for the oil as Western sanctions curb international financial payments destined for Tehran. The two countries agreed in January to settle 45 percent of the oil trade in rupees. The balance of HPCL's payment, made on Friday, was through Turkey's Halkbank and India's UCO Bank. 'This is the first payment we have made since the gate was opened...we have paid 45 percent in rupees and 55 percent through Halkbank,' B. Mukherjee, head of finance at HPCL, told Reuters. Since July 2011, refiners in India have been using Halkbank to pay their annual oil import bill of more than $10 billion, after a previous payment channel was blocked in December 2010 . . . HPCL has paid 2.75 billion Indian rupees ($49.25 million) to Iran through UCO Bank and $60 million through Halkbank, a company source privy to the matter said." (Reuters, "India HPCL begins rupee payment for Iran oil," 3/8/12)

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"Secretary of State Hillary Clinton said on Monday the U.S. would exempt India, South Korea, Turkey and four other countries from financial sanctions because they have significantly cut purchases of Iranian oil. That means Turkey's Halkbank will be able to make payments to the Iranian Central Bank for oil shipments to Tupras without fear of being blacklisted by the United States." (Reuters, "U.S. presses Turkey to cut more Iranian oil imports," 6/12/12)

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"Turkish lender Halkbank , little known outside Turkey, has gained a reputation in the oil market over the past 18 months for handling transactions that other banks fear to touch - trade deals with Iran... Halkbank's stance toward Iran largely has reflected the attitude of the Turkish government, which owns 75 percent of the bank, towards international sanctions against Tehran over its nuclear programme... Halkbank handles payments to Iran by Tupras, which is owned by the Turkey's largest conglomerate Koc Holding, according to industry sources with knowledge of the transactions. Indian refiners, unable to pay Iran for imported oil through their own banking system for fear of U.S. retribution, turned to Halkbank in mid-2011 to make payments. In December, Halkbank refused to open an account for an additional Indian refiner, BPCL, for that purpose. No reason was given, though there was speculation that Turkey wanted to avoid further antagonising Washington. Halkbank was contacted over the status of the bank's dealings with Iran, but senior officials were unavailable for immediate comment." (Reuters, "Iran dealings put Turkey's Halkbank in spotlight," 1/4/2012)

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"Halkbank, as the bank is popularly called, was revealed to have facilitated payments of $100 million between Indian oil refiners and the National Iranian Oil Company. This fund transfer was a multi-step process coordinated with Union Bank of India, and designed specifically to evade international sanctions." (Bloomberg, "Iran Receives $100 Million in Oil Payments From India, PTI Says," 8/2/2011)

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Conducts business with U.S. banks and Iranian banks. ("Iran's Dirty Banking", Avi Jorisch)

Conducts business with U.S. banks: Bank of America NA, Citibank NA and Iranian banks ("Iran's Dirty Banking", Avi Jorisch)

"The Iranian delegation also met with officials of Hinduja Bank Ltd –a lender originally founded as a finance company in 1978 and became a Swiss-regulated bank in 1994. Officials of Hinduja Bank outlined the wide-reaching operations of the bank and its holding company in many countries, and announced that its online branch, which operates out of Germany, can offer services to Iran. " (October 2017)

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"Some European financial institutions are suspending almost all Iranian transactions because they fear losing access to U.S. financial markets, European banks and companies say. Geneva-based Hinduja Bank (Switzerland) Ltd., one of the last banks in Western Europe still handling Iran trades, told its clients last month it would stop issuing letters of credit for Tehran banks, citing new U.S. sanctions. 'The latest list of sanctioned entities announced [by the U.S. Treasury] includes the five private-sector banks in Iran with whom we have been working,' the bank said. 'The internal rules of Hinduja Bank preclude us from working with these Iranian banks. ' An official at Hinduja declined to comment." (Wall Street Journal, "EU Firms Join Debate Over U.S. Sanctions on Iran," 8/15/12)

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“A Swiss bank owned by India's Hinduja Group said this week it is continuing food trade finance with Iran despite the sanctions.” (Reuters, “Iran poised to start big feed grain imports,” 4/13/2012)

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"In Geneva, Hinduja Bank (Switzerland) Ltd., handles Iranian food transactions for Swiss companies. Achille Deodato, a manager for group and business control, said the bank remains involved 'with the authorization of Swiss authorities' in trade involving letters of credit and 'bulk agricultural commodities.'" (The Wall Street Journal, "Willing Banks Find Profits in Legal Trade With Iran," 4/8/2012) 

"Swiss lender Banque de Commerce et de Placements (BCP) has suspended new transactions with Iran and is winding down activities with the country after U.S. President Donald Trump’s pullout from the nuclear deal with Tehran, the bank said on Tuesday. “We have suspended any new transaction related to Iran after May 8, 2018 and started the ‘wind down period’ within the framework of OFAC announcement,” the bank said in a emailed statement to Reuters, referring to the U.S. Treasury’s sanctions enforcement arm." (May 29, 2018).

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Jan 2018 - Some banks such as Bank Muscat have returned to the Iranian market, but in Europe, only small privately ­owned institutions are handling banking transactions with Iran. These include DZ Bank (Germany), Erste Group Bank (Austria), Banque Wormser (France), BCP bank (Switzerland), and EIH Bank (Germany). Many of the banks have pre­existing links to Iran, such as a major shareholder or branches in the country.

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Iranian private lender, Bank Sina, has opened an account in Switzerland’s BCP, which allows Sina to transfer euro and Swiss franc. According to a press release released on Sina’s website on Saturday, the bank is also ready to issue letters of credit and receive finance from the Swiss lender. (Financial Tribune, "BCP-Sina Bank Tie-Up" 12/4/2016)

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Conducts business in Iran and with U.S banks. (Avi Jorisch, "Iran's dirty banking," 2010) 

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“The $4.2 billion in unfrozen oil revenue was the biggest single gain in a package of sanctions relief worth around $7 billion for Iran, according to U.S. officials. In exchange, Iran agreed to curtail some of the most dangerous elements of its nuclear program. Iran insists its pursuits are for purely peaceful purposes such as producing energy and medical research…On Feb. 3, the first payment of $550 million in unfrozen oil revenue was transferred from a Japanese bank to Banque de Commerce et de Placements, or BCP, in Switzerland. As of Wednesday, the funds hadn't been withdrawn. A BCP spokesman declined to comment. A spokeswoman for the Swiss Economic Affairs department, Marie Avet, confirmed the money had come to a Swiss bank. Switzerland, which hosted the talks that produced November's accord, had been asked to help facilitate the repatriation of funds, she said.” (Wall Street Jouranl, “Iran Can't Withdraw Much Oil Revenue Under Interim Nuclear Deal,” 4/6/14)

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“As part of talks in Geneva over the nuclear question, Tehran is pressing world powers to speed up trade finance arrangements on humanitarian deals involving both Western and Iranian banks, according to an Iranian government document seen by Reuters and sources familiar with the initiative. Iranian government officials and international trade sources say Tehran wants to simplify complex trade finance arrangements potentially worth billions of dollars, which would alleviate pressure on the country's sanctioned banking system…Iranian government officials said the document, which has been sent to Iran's Supreme National Security Council, tasked with safeguarding Tehran's interests, listed the following banks as ‘available for further actions’: Standard Chartered Bank (London), Societe Generale (Paris), Banque de Commerce et de Placements (BCP) (Geneva), UniCredit Bank (Munich), Commerzbank (Frankfurt), United Bank (Zurich) and BHF Bank (Frankfurt). It was not clear whether these banks had been approached to provide finance. Two business executives familiar with the initiative said they were aware that Standard Chartered, Societe Generale, Commerzbank were among those on the wish list. Commerzbank, Societe Generale, United Bank and BCP all declined to comment. A spokeswoman for Standard Chartered said the bank was not involved and would not get involved in any transaction with any party from Iran.” (Reuters, “Western banks cold-shoulder Iran trade finance scheme,” 3/13/14)

 

• Conducts business with U.S. banks and Iranian banks ("Iran's Dirty Banking", Avi Jorisch)