Santander UK has stated that it has found no breach of US sanctions against Iran in an investigation it opened into the opening and use of an alleged account linked to Tehran.
In a message to employees, the bank refers to a report published on February 4 in the Financial Times newspaper about the bank account allegedly linked to Iran.
We have conducted a thorough investigation into the allegations and circumstances surrounding the opening and use of the account referred to in the article, as well as the individuals connected to it
Juan Manuel Cendoya, the bank’s global head of communications, corporate marketing and research.
We can therefore categorically state that Santander has found no breach on its part of US sanctions against Iran in relation to these allegations.
The letter also stressed that, for legal and reputational reasons, the allegations contained in the newspaper report required a “clear and firm response from us“.
Investigation findings
The investigation into the account found that the account holder was not on any sanctions list and that the company, according to relevant public records, was owned by individuals who were not identified as being subject to sanctions.
At no time was Santander UK aware that the account holder was owned by a trust of a US-sanctioned Iranian company, as alleged in the article, nor could the bank have identified the trust based on a review of public records.
Sanctions regimes
The account was closed in 2022 for reasons unrelated to these allegations, the message adds.
The bank also stresses that it has conducted a broader review of other individuals associated with entities and individuals identified in the article and that no sanctions breaches have been found anywhere else in Santander’s global operations.
As a global bank, Banco Santander is well aware of its obligation to comply with all relevant sanctions regimes.
Initial allegations
According to the FT, Santander UK and another British bank provided accounts to British companies secretly owned by an Iranian petrochemical company subject to sanctions.
The state-controlled Petrochemical Commercial Company was part of a network that the United States accuses of raising hundreds of millions of dollars for the Iranian Revolutionary Guard Corps’ Quds Force and of working with Russian intelligence agencies to raise money for Iranian militias.
Santander shares fell 5% on the stock market on February 4 due to the publication of this information.
Internal investigation
In a separate statement, Santander chair Ana Botín said the bank’s internal investigation had found no “direct or indirect breaches of sanctions anywhere in the group”.
She said the bank had taken “internal and external measures” to address the information published in the FT.
The FT report alleged that Iran, through the petrochemical company Petrochemical Commercial Company, was evading economic sanctions through accounts at Santander UK, the British subsidiary of the group, and Lloyds, two of the largest banks in the United Kingdom.
Evasion accusations
Santander lost 5% on the stock market after being accused of allowing Iran to use a bank account to evade sanctions.
According to the FT, the Iranian company used shell companies based in China to evade US sanctions. One of them, Pisco UK, is registered to a detached house in Surrey (south east of the country) and used a business account at Santander UK.
After a thorough investigation, the bank states: “We can categorically state that Santander has found no evidence of any breach of US sanctions against Iran in relation to these allegations.”
FAQ
No. Santander says their investigation found no evidence of sanctions violations.
The Financial Times published an article alleging a Santander account was linked to a sanctioned Iranian company.
It’s an Iranian company accused by the US of funding Iranian militias and the Revolutionary Guard.
Investors reacted negatively to the accusations of potential sanctions violations.
It’s likely that UK and US regulators will continue to look into the matter.
