US punishes Iran-linked Bahrain bank

Fri, 14 Mar 2008 11:22:11

The United States has imposed financial sanctions on the Future Bank, a Bahrain-based bank, for its links with Bank Melli of Iran.

"Bank Melli goes to extraordinary lengths to assist Iran's pursuit of a nuclear capability and ballistic missiles, while also helping other designated entities to dodge sanctions," the US Treasury Undersecretary Stuart Levey claimed in a statement.

"Banks and other entities owned or controlled by Bank Melli pose a serious threat to the integrity of the international financial system," he added.

Iran has repeatedly asserted that its nuclear program is peaceful and as a signatory of the Non-Proliferation Treaty has an inalienable right to nuclear technology for civilian purposes.

"In light of the action taken by the US authorities against the Future Bank we wish to inform the public that they are in contact with the bank in respect to its obligations toward its customers," said the Central Bank of Bahrain in a move to reassure clients.

Bank accounts and financial assets of the Future Bank will be frozen in the US. Henceforth, Americans are banned from doing businesses with the Manama-based bank, according to US banking officials.

Future Bank, a full commercial bank, was established in 2004 as a joint venture between Iran's Bank Saderat and Bank Melli as well as the Ahli United Bank [AUB] of Bahrain.