UK banks have provided bank accounts to holding companies linked to a state-backed Iranian petrochemicals company which has been under western sanctions since 2018, according to reports.
The Financial Times reported that both Lloyds and Santander provided accounts to British front companies owned by Petrochemical Commercial Company (PCC).
PCC is a sanctioned Iranian petrochemicals company accused by the US of helping to raise hundreds of millions of dollars for the Iranian Revolutionary Guard and of working with Russian intelligence agencies.
Both PCC and its subsidiaries have been under UK and US sanctions since 2018.
The company has continued to operate out of an office in Grosvenor Gardens by using a web of holding companies that are not sanctioned, the report suggests.
According to the FT, PCC has used these companies to receive funds from Iranian front entities in China while concealing their real ownership.
One of these companies, Pisco UK, used a business account with Santander UK. Another, called Aria Associates, has an account with Lloyds.
A spokesperson for Santander UK said: “Santander is not in breach of US sanctions based on our investigation. We have policies and procedures in place to ensure we comply with sanctions requirements and will continue to engage proactively with relevant UK and US authorities.”
A Lloyds spokesperson said: “We believe we have met all legal and regulatory obligations and, based on our own investigation, we do not believe we have breached any sanction requirements.”
The revelations come as tensions continue to rise between the west and Iran. The US carried out further airstrikes against the Iranian-backed Houthis on Sunday.
The UK government has been approached for comment.
