The Associated Press reported: A British court on Wednesday rejected an Iranian bank’s bid to be exempted from European Union sanctions which led to the freezing of its assets.
Melli Bank PLC, which contends it is legally distinct from Bank Melli, had sought an injunction barring enforcement of European Union sanctions in Britain pending a final ruling from the European courts.
Two High Court judges declined to do so because the European Court would be taking up the case within days.
Melli Bank PLC had argued that it was legally distinct from Bank Melli and that it was strictly regulated by Britain’s Financial Services Authority. Bank Melli has been accused of facilitating purchases of sensitive materials for Iran’s nuclear and missile programs.
Lawyers for the Treasury and the Foreign Office maintained that Bank Melli was part of the parent bank, and the sanctions were justified.
Lord Justice Alan Moses, who heard the case with Justice Jeremy Sullivan, said Melli Banks’ challenge in the European Court duplicated the action brought in London.
Moses said the sanctions were imposed to augment U.N. resolutions aimed at persuading Iran to end what was seen as proliferation of offensive nuclear activity and cooperate with the International Atomic Energy Agency.
“Freezing the assets of a subsidiary and preventing that subsidiary from trading could be regarded as a powerful lever to persuade Iran to comply with the U.N. resolution,” he said.
“To sanction the parent while leaving a UK subsidiary free to trade might be seen as undermining the force and credibility of the sanctions imposed on the parent.”