In a startling revelation, the Financial Times reported on Sunday, February 4, 2024, that Iran allegedly utilized accounts at two major UK banks, Banco Santander and Lloyds, as part of an extensive scheme to evade US sanctions. These actions are believed to have been orchestrated with the support of Tehran’s intelligence services. The Petrochemical Commercial Company (PPC), a state-controlled Iranian entity, has been implicated in a network accused by the United States of raising substantial funds for the Quds Force of the Iranian Revolutionary Guard and collaborating with Russian intelligence agencies.
According to the investigation conducted by the Financial Times, Lloyds and Santander UK facilitated the movement of funds by providing accounts to British shell companies, purportedly belonging to a sanctioned Iranian petrochemical company situated near Buckingham Palace.
The PPC, controlled by the Iranian state, is alleged to be part of a network accused by the US of raising hundreds of millions of dollars for the Quds Force and collaborating with Russian intelligence to fund Iranian militias. Both the petrochemical company and its British subsidiary, PCC UK, have been under US sanctions since November 2018.
Documents, emails, and accounting records reviewed by the Financial Times reveal that despite the sanctions, PCC’s UK division continued its operations from an office in Grosvenor Gardens, Belgravia, London, utilizing a “complex network of front entities in Britain and other countries.”
The Financial Times’ analysis of the documents indicates that PCC employed UK companies to receive funds from Iranian front entities in China while concealing true ownership through “trust agreements” and nominee directors.
One such company, Pisco UK, registered in Surrey, holds a business account with Santander UK. Despite being officially owned by a British citizen named Abdollah-Siauash Fahimi, leaked internal documents suggest that Pisco is fully controlled by PCC. In 2021, Pisco’s Santander account reportedly received a transfer from a Chinese company, Black Tulip, identified in internal PCC records as another trust company controlled by a PCC employee.
When approached by the Financial Times, Santander stated it could not comment on specific customer relationships but emphasized its commitment to sanctions compliance. The report suggests that Santander has already closed Pisco’s account.
A second PCC front company in the UK, Aria Associates, reportedly holds an account with Lloyds. Officially owned by Mohamed Ali Rejal, identified as the deputy chief executive of PCC UK in internal emails, Aria Associates is alleged to have regular communications with company officials in Tehran, according to the British newspaper.
These revelations underscore the challenges in enforcing sanctions and the role of global financial institutions in preventing illicit financial activities that may support sanctioned entities. As the story unfolds, it raises questions about the effectiveness of existing measures and the need for continued vigilance in the face of evolving financial schemes.
