Prime Minister Cameron challenges Barclays on Iran transactions

Prime Minister David Cameron has challenged Barclays for declining to process payments from Iran after they ceased to be prohibited in the EU following sanctions relief. He has written to Barclays stating that it was acting “in opposition to the policy of the UK government”. Barclays replied that there was “a considerable divergence in both approach and intention between the EU…and the US, where primary sanctions remain in place”, and that “as we offer banking services through our US operations we are required to continue to restrict business activity with Iran”.

In January, Chief Executive of the British Bankers’ Association Anthony Browne said that “International banks are likely to need considerably more clarity from US authorities… before engaging with Iran”, reflecting what is said to be the position of many UK banks – that they still face substantial compliance risks while most US sanctions on the country remain in force.