Sean O'Neill, Crime and Security Editor
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Barclays is using controversial American anti-terrorism laws to shut down the personal bank accounts of British citizens who are working for Iranian-owned businesses, The Times has learnt.
The bank has unilaterally enforced anti-Iran sanctions drawn up by the Bush Administration under the US Patriot Act against companies that operate completely legally in Britain. Those affected by the account closures are not directors of the companies but ordinary staff members, including clerical officers, computer engineers and bank tellers.
Barclays refuses to discuss the decision or to say how many people have been affected by its action. But The Times has obtained a letter written by Deborah Cooper, a senior Barclays lawyer, which states that the bank must consider “the global regulatory environment” and regards “full compliance with sanctions regimes to be of extreme importance”.
Ms Cooper’s letter was addressed to lawyers representing employees of the Iranian-owned banks Saderat and Melli whose accounts have been closed and funds returned to the account holder.
Both banks are based in the City, fully licensed to operate in Britain and regulated by the Financial Services Authority. Neither is subject to the extensive Iranian sanctions regimes that are operated by the Treasury or the European Union.
However, the US Government’s Office of Foreign Assets Control has placed both on its list of specially designated nationals (SDNs).
Ms Cooper’s letter said: “Barclays has . . . a policy of not conducting business with people or entities which are publicly designated SDNs and in line with that Barclays is unable to receive payments from or undertake other business which involves Melli or Saderat.”
Barclays began the account closures in February, shortly after reports from industry sources that US Treasury agents had been touring the City of London putting pressure on financial institutions to withdraw from any form of business that might have Iranian links.
One source told The Times that City banks had been warned that they would lose access to the US market if they continued to deal with Iranian businesses. Barclays has extensive business interests in the United States.
The US Government has accused Melli Bank of alleged links to the proliferation of weapons of mass destruction and described Bank Saderat as a terrorist financier that has channelled money to Hezbollah and other groups. Both banks deny the allegations strongly.
Case study: Cast out in the supermarket
Chris was doing the shopping in Tesco when Barclays rang to tell him that his bank account was being closed. Later that evening his wife was told that her Barclays account, which she had held for 25 years, was also being closed.
Chris, 46, works in IT for Bank Saderat, and his wife is in the accounts department of Melli Bank. Both institutions are Iranian-owned. “They said it was because of sanctions but I knew there were no British sanctions on the banks. I asked them if they were responding to US laws and they said they didn’t have to give me a reason,” he said.
The couple opened new accounts with one of Barclays’ rivals but they had difficulty transferring standing orders, especially Chris’s child-support payments. He said: “I know that UK banks are being pressured by America to stop all dealings with Iran but what impact will it have to shut an English bloke’s account with an English bank? The Iranians won’t give a monkey’s. What upsets me is the lack of respect Barclays have for their customers.”
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For more than ten years where have all you people been ? that is the question? All business in the UK and in Europe have to have proof that an amount over £10.000 is not coming from unlawful activity, All Banks apply this ruling not just Barclays, did anyone know this ruling when they wrote in?
Dennis Higgins, Worcester, Worcestshire
I think i see where barclays is coming from.I'm trying to get employed by barclays by the way...Wonder if i would have commented the same,otherwise.Well i like barclays honest.I'm looking for a job in accountancy and finance in London.Iam enthusiastic and eager to learn.Anyone care to give me a job?
Liz, London, England
As an American, I would like to say that I agree with you. The Patriot Act is a ridiculous, unconstitutional piece of legislation that infringes on the rights of Americans, as well as people all over the world. Trust me, you're not alone in your feelings about our President.
Angelina, Chicago, USA
ah the patriot act - what a wondferfull ill thought out act - rushed thu after 9/11 - means that american law prevails over local law - and rendition flights are ready to enforce it ..and foreign Govts? well they can just shut up...the repugnicant president knows best how to protect his own.
zugerman, zurich, switzerland
let me get this right.... Barclays is doing more in the war against terror than the Senator for the UK, Gordon Brown? Why aren't they proscribed in the UK, precisely, Gordon?
Matt, London, uk
Union Jack over?! Long live Stars & Stripes?!
Konstantin Piskun, Minsk, Belarus
Outrageous!
I was considering opening a Barclays business account but won't be now.
Since when does US law apply here in the UK? Its about time our politicians protected us instead of touching their toes for the US fascists.
Craig, it was Russia that won WWII not the US... remember that.
Ian Watson, Gillingham, United Kingdom
Quite a demonstration that The Bush adminisration
and the English administration are the same entity.
Margaret Rowe, Lewes, East Sussex
If the americans are going to play bully boy with out, British, banks and finanical instutitions then we should start do the same to them, closing accounts not doing buinsess with them.
Of course that's so not likely to happen. When America sings we sing along.
Nicola Clubb, Bournemouth, UK
down Barclays operations in the Greater UK. This a threat to the ntional interests of British Society. Barclays is acting against Britain, and her interests. Barclays is actually taking an active part in the US initiated Holocaust in the Middle East. We will be closing our accounts with Barclays.
Bob Van den Broeck, Norwich, United Kingdom
Why do British companies seem to roll-over and play dead whenever the US twicthes? Have they no guts?
Is Britain independent or not?
I'm glad I don't bank with Barclays (and I have no connection with these Iranian banks btw)
tanker21, Bristol,
I think U.S. (and Barclays Bank) should tell the public exactly what particular measures were taken by Iran to support terrorism, threathening Middle East peace with atomic weapons or violating human rights.
Attila, Budapest,
The only protection any UK citizen can expect from either its own ( a US puppet anyway) or the US governemnt is that afforded by the EU. Only the EU has the economic muscle to stand up to the US bullies. It's about time the Brits woke up
Eddie Reader, birmingham, england
Maybe your parents would have felt the same way as America got it wrong 60 years ago. The peace that the west enjoys from their union with the U.S. is far greater than what they will share with a union with Iran. Grow up and just change your habits.
Craig, babylon, iraq
If I recall correctly, Barclays' auditors are also auditors of Saderat. Does that mean they will switch auditors?
Thought not.
panderer, Bristol,
This is how the US operates -and controls its citizens - by spreading fear, both at home and abroad. They still believe that money solves everything, Ever wonder why they still block Cuba, yet have a record trading deficit with China which has considerable human rights isues? It's all about money
Richard Stevenson, Charlotte, USA
Assuming they would have us, can UK simply become part of the United States? At least the laws would no longer be extra-territorial. Interestingly, if that were to happen, the UK would make up about 1/5th of the US population so we would have a fairly loud voice. Perhaps even restore the Queen!?
Rob, Bristol,
Some complain about the EU taking over but this shows we have already been sold out to the USA. I expect those who expressed their opinion against the war on arab nations will eventually have their accounts closed. Is it the role of UK banks to enforce US political opinion in the UK ?
Trevor, Thetford, UK
Bush says "they hate us for our freedoms, so I am going to take away your freedoms and they won't hate us any more".
Ben, Birmingham, UK
Terrorists threaten another country's interests and citizens. So just what are these US Treasury Agents doing? Threatening our interests and citizens, admittedly not with bombs but with sanctions. So why is our government permitting US terrorists to operate in our country?
Trevor, Brighton, UK
What a bloody shambles... this is not correct.... what a crazy world we live in. It all comes down to money and our master Uncle Sam. Since when did Brition become a dictatorship, we are worse then Iranians.
shezza, glasgow,
"They hate us for our freedom".
The sooner people realize the nature of government is to expoit us & not to protect us, the better.
Phil, Nottingham, England
Some talk of Alexander,
And some of Hercules,
Of Hector and Lysander,
And such great names as these,
But of all the world's great heroes,
There's none that can compare,
With a tow row row row row row,
For the British Lapdog.
Arik Silverman, Milwaukee, USA
And yet more rubbish from across the pond.. when will people realise .. we don't have to listen to them... they usually get it wrong.
Pepe, London, UK