The Terror Finance Blog
June 16, 2010
Washington, D.C.
On Wednesday, June 16, 2010, the U.S. Treasury Department officially designated Post Bank of Iran for “providing financial services to, and acting on behalf of, Bank Sepah”. Both financial institutions are now designated under Executive Order (EO) 13382. Post Bank reportedly facilitated business on behalf of Bank Sepah for Iran's defense industries and overseas beneficiaries. Originally Bank Sepah was designated for providing financial services to Iran's missile industry, including two entities linked to Iran's ballistic missile program. Bank Sepah was also subsequently designated by the United Nations in March 2007 under UNSCR 1747.
Specifically, Post Bank is accused of facilitating millions of dollars between an Iranian-based ‘Hong Kong Electronics’ which provided support to designated North Korean entities, including Tanchon Commerical Bank (designated under EO 13382 and UNSCR 1717) and a weapons proliferator, Korea Mining Development Corporation (designated under EO 13382)
According to the prestigious London headquartered global database Bankers’ Almanac, owned by the Reed business information group, Post Bank reportedly maintains eight correspondent banking relationships. These include banks located in countries that are strong allies of the United States. Correspondent banks provide financial services, such as access to foreign currencies and markets, to other banking institutions when they do not have a physical presence in any given location.
