European banks begin to curb Iran deals after US pressure

RAW STORY
Published: Sunday May 21, 2006

European banks have begun to curb Iran deals after pressure from the United States, according to a story set for the front page of Monday's New York Times.

Excerpts from the article written by Steven R. Weisman:
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Prodded by the United States with threats of fines and lost business, four of the biggest European banks have started curbing their activities in Iran, even in the absence of a Security Council resolution imposing economic sanctions on Iran for its suspected nuclear arms program.

Top Treasury and State Department officials have intensified their efforts to limit the banks' Iran-related activities in the past six months, invoking anti-terrorism and banking laws. They have also traveled to Europe and the Middle East to drive home the risky nature of dealing with a country that has repeatedly rebuffed Western demands to suspend uranium enrichment, and to urge European countries to take similar steps.

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The four European banks -- UBS and Credit Suisse banks of Switzerland, ABN Amro of the Netherlands, and HSBC, based in London -- have disclosed the limits on their activities in Iran in recent weeks. Almost all large European banks have branches or bureaus in the United States, units that are subject to American laws.

American officials said the United States had informed its European allies about the new pressure exerted on the banks, and indeed asked these countries to join the American effort. At the same time, the Americans have not publicized the new pressure, partly out of concern it could complicate efforts by European negotiators who are still talking with Iran about a package of incentives to suspend uranium enrichment.
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