In a recent revelation, Iranian entities reportedly used accounts at Lloyds Banking Group PLC (NYSE:LYG) and Banco Santander SA (NYSE:SAN) to evade U.S. sanctions. The banks are now under scrutiny for their involvement in the illicit transactions.
What Happened: The Iranian entities, including the Islamic Revolutionary Guard Corps, used the British and Spanish banks to bypass U.S. sanctions, reported the Financial Times on Sunday. The IRGC is a branch of the Iranian Armed Forces and has been designated as a terrorist organization by the U.S.
The transactions were reportedly carried out through a complex web of companies and individuals, making it difficult for the banks to detect the illicit activity. The U.S. authorities are now investigating the matter, and the banks could potentially face significant penalties if found guilty of violating U.S. sanctions.
“The Group’s business activities are conducted to ensure compliance with applicable sanctions laws. We are committed to adhering to all legislative and regulatory requirements as they relate to economic crime. We are not permitted to comment on individual customers. In addition, due to legal restrictions, we cannot comment on the submission of suspicious activity reports to relevant …