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Turkey bank regulator dismisses 'rumours' after Iran sanctions report

October 22, 2017 at 1:23 pm

Turkey’s banking regulator BBDK

Turkey’s banking regulator urged the public on Saturday to ignore rumours about financial institutions, in an apparent dismissal of a report that some Turkish banks face billions of dollars of US fines over alleged violations of Iran sanctions.

“It has been brought to the public’s attention that stories, that are rumours in nature, about our banks are not based on documents or facts, and should not be heeded,” the BDDK banking regulator said in a statement, adding that Turkey’s banks were functioning well.

The Haberturk newspaper on Saturday reported that six banks potentially face substantial fines, citing senior banking sources. It did not name the banks. One bank faces a penalty in excess of $5 billion, while the rest of the fines will be lower, it said.

Asked to comment, a spokesman for the US Treasury, which is responsible for US sanctions regimes, said only: ”Treasury doesn’t telegraph intentions or prospective actions.”

Two senior Turkish economy officials told Reuters Turkey has not received any notice from Washington about such penalties, adding that US regulators would normally inform the finance ministry’s financial crimes investigation board.

Read: Ramping up rhetoric, Turkey’s Erdogan chastises US over democracy

US authorities have hit global banks with billions of dollars in fines over violations of sanctions with Iran and other countries in recent years.

The administration of US President Donald Trump last week adopted a harsh new approach to Iran by refusing to certify its compliance with a nuclear deal struck with the United States and five other powers including Britain, France and Germany under his predecessor Barack Obama.

Trump argues the deal was too lenient and has effectively left its fate up to the US Congress, which might try to modify it or bring back US sanctions previously imposed on Iran.

Last week, the US Treasury Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker said Trump’s strategy involved placing additional sanctions on Tehran and that Washington had been “engaging our allies and partners” with the aim of denying funds to Iran’s Revolutionary Guard Corps.

The Haberturk report comes as relations between Washington and Ankara, which are NATO allies, have been strained by a series of diplomatic rows, prompting both countries to cut back issuing visas to each other’s citizens.