Iran 'using British banks to channel money to terrorists'

observer ^ | 08 OCT 2006 | Conal Walsh

[humint]

The Financial Services Authority is urgently scouring Britain's banking system for evidence of Iranian terrorism funding following an alert from the US authorities. The move comes after officials at the FSA were shown American intelligence indicating that suspicious Iranian funds were being funnelled through the City of London and other financial centres. Hank Paulson, the US Treasury Secretary, claimed last month that Iran was using the western banking system to sponsor international terrorism and nuclear procurement. Paulson warned that 'blue chip banks' were being unwittingly used by a network of 'more than 30 front companies' controlled by Tehran. America also recently accused the Iranian bank Saderat of channelling hundreds of millions of dollars to Hizbollah and other violent Palestinian groups.

[humint]

[mewzilla]

From this September '06 link...

Prepared Remarks by Stuart Levey Under Secretary for Terrorism and Financial Intelligence Before the American Enterprise Institute for Public Policy Research

From the link:

First, while Iranian financial institutions are prohibited from directly accessing the U.S. financial system, they are permitted to do so indirectly through a third country bank for payment to another third country bank. Today, we have cut off one of the largest Iranian state-owned banks, Bank Saderat, from the U.S. financial system. Here is why: This bank, which has approximately 3400 branch offices, is used by the Government of Iran to transfer money to terrorist organizations. Iran uses Saderat to transfer money to Hizballah. Iran also uses it to transfer money to E.U. designated terrorist groups Hamas, the PFLP-GC and the Palestinian Islamic Jihad. For example, since 2001, a Hizballah-controlled organization received $50 million directly from Iran through Saderat. Hizballah uses Saderat to send money to other terrorist organizations as well. Hizballah has used Bank Saderat to transfer funds, sometimes in the millions of dollars, to support the activities of other terrorist organizations such as Hamas in Gaza. We will no longer allow a bank like Saderat to do business in the American financial system, even indirectly.

Paging the Brits...

[mewzilla]

And check this out...

Iran's Nine-Digit Line Item for Terror

Claudia Rosett ping, backhoe :)

[kinoxi]

Last time I checked a pound was heavier than...

[ARealMothersSonForever]

Paulson warned that 'blue chip banks' were being unwittingly used by a network of 'more than 30 front companies' controlled by Tehran.

So what is the US to do? Impose economic sanctions on Great Britain because of their support for Iran, and Iranian business? Specifically BP. We must face up to the fact that we, the US, brought this entire Iranian mess upon ourselves (thanks Jimmah AND a spineless congress). If we economically destabilize Iran, it hurts British, German, and other EU interests. I did not exactly find an "or else" ultimatum from Paulson in this piece. What if the Blue Chips tell the US Treasury to p!ss up a rope? Will the Treasury send enforcement to British soil?

[mewzilla]

BTW, anyone know if Saderat has any financial interests in any Iraqi banks?

[mewzilla]

Interesting link....

Islamic Banks & Financial Institutions Information System

[humint]

So what is the US to do? Impose economic sanctions on Great Britain because of their support for Iran, and Iranian business? Specifically BP.

The question of international sanctions on Iran - outside of the UN - is one of cooperation based on mutual interests. The Brits have said they will cooperate. That is, the British Government has said they will cooperate. This is what we're witnessing here. The consequences of not economically destabilizing Iran are obvious. Any bank helping Iran make nukes or support terror will get a slapdown from the appropriate enforcement agency. To your point about Carter – you note it’s a mess. Are you suggesting we lay around in filth, and do nothing? Or are you suggesting sanctions are a limp wrist approach to solving the Iran crisis? The media has gotten bored of it but I can assure you that every day the Iranians are inching closer and closer to an operable nuclear warhead.

[humint]

First, while Iranian financial institutions are prohibited from directly accessing the U.S. financial system, they are permitted to do so indirectly through a third country bank for payment to another third country bank. Today, we have cut off one of the largest Iranian state-owned banks, Bank Saderat, from the U.S. financial system. Here is why: This bank, which has approximately 3400 branch offices, is used by the Government of Iran to transfer money to terrorist organizations. Iran uses Saderat to transfer money to Hizballah. Iran also uses it to transfer money to E.U. designated terrorist groups Hamas, the PFLP-GC and the Palestinian Islamic Jihad.

Thanks for the link

[ARealMothersSonForever]

Are you suggesting we lay around in filth, and do nothing?

Absolutely not! We should use any and all means to insure that Iran comes into compliance. And promote the cohesion of the Anglo-sphere, especially within Iran.

Or are you suggesting sanctions are a limp wrist approach to solving the Iran crisis?

I am suggesting that the time to move forward with harsh sanctions is at hand. The political "damage" has already been pressed on Blair and his party. Congress is not in session. Why wait? Even if Iran rattles sabers and makes life more difficult via their proxies in Lebanon and Iraq. There is not a downside for the US at this juncture.