Posted on 07/24/2007 8:45:51 PM PDT by nuconvert
Santander Traded with Blacklist Iranian Bank
July 23, 2007
Telegraph
Katherine Griffiths
Santander, one of Europe's biggest banks, has been trading with an Iranian bank that is blacklisted by the US for allegedly financing nuclear proliferation. Santander, Spain's largest bank and the owner of Abbey in the UK, was doing business with Teheran-based Sepah as recently as March, The Daily Telegraph can reveal.
Trading with businesses that are blacklisted for alleged links to terrorism is a serious breach of US law and can have draconian consequences.
A spokesman for the US treasury department said: "Violations of US sanctions programmes may result in civil and even criminal penalties. The same statute or fine structure is used regardless of whether it's a foreign bank operating in the United States or a US bank."
Santander, which is currently bidding for ABN Amro along with Royal Bank of Scotland and Fortis, must comply with US law because it is listed in New York and has branches in New York and Miami. It also owns almost a quarter of Philadelphia-based Sovereign Bank.
Santander is thought to have opened accounts for Sepah in various European countries and in Teheran.
Allegations have also been made that Santander had a banking relationship with another Iranian bank that the US is targeting for its alleged links to terrorists.
Santander said: "Neither of these institutions has an open account with Santander."
advertisementThe Spanish bank appears to have ended its relationship with Sepah after March. No details are known about the nature of its contact with the other bank.
Santander said: "Banco Santander is confident that it complies with all relevant banking regulations in the territories in which it operates, and with international requirements placed on banks, including those concerning money-laundering and the financing of terrorism."
Sepah, which is owned by the Iranian state, was placed on the US blacklist in January. At the time, Stuart Levey, under-secretary for terrorism and financial intelligence, said: "Sepah is the financial linchpin of Iran's missile procurement network and has actively assisted Iran's pursuit of missiles capable of carrying weapons of mass destruction."
Mr Levey also urged other countries to "deny financial assistance to Iran's nuclear and missile programmes".
In March the United Nations agreed to freeze Sepah's international assets.
While the threat of hefty penalties has prompted a swift response from US banks to increasingly severe restrictions on doing business with several Iranian banks, US officials have found it more difficult to crack down on European lenders.
Many European banks have historic relationships with Middle Eastern partners. Senior banking sources said they did not think Santander was alone in doing business with Iranian banks that are being targeted by the US.
In order to make the isolation of banks that are suspected of financing terrorists more effective, Mr Levey and Hank Paulson, the former head of Goldman Sachs who is now US treasury secretary, have mounted a campaign to persuade European banks to cut their ties with certain partners.
The treasury spokesman said: "We've been meeting with our government counterparts, as well as financial institutions, throughout Europe, Asia and the Middle East to discuss the risks of doing business with Iran."
Sepah has denied the US allegations against it.
I’m shocked, I tell you, simply shocked.
Ping.
How can Rudy Giuliani’s firm advise a client that is blacklisted by the US?
Firm Advises Grupo Santander in Acquisition of Leading U.S. Auto Finance Company
September 25, 2006
NEW YORK (September 25, 2006) –Bracewell & Giuliani advised Banco Santander Central Hispano, S.A. (SAN.MC, STD.N) in its agreement to acquire 90 percent of the U.S. auto financing company, Drive Financial Services, for approximately US $651 million.
The transaction is scheduled to be completed in 2006. Santander will acquire a 64.5 percent interest from HBOS plc and will acquire the balance from Drive Financial’s management. Thomas G. Dundon, Drive Financial’s president and chief operation officer, will retain a 10 percent interest.
Drive Financial, based in Dallas, is one of the leading auto financing companies in the subprime customer sector in the United States with operations in 35 states.
Santander Consumer Finance, one of Grupo Santander’s core businesses, is a European leader in consumer finance.
Bracewell & Giuliani Attorney Team
Partners: Rudy Giuliani (Management), Will Anderson, Mike Telle, Cle Dade (Corporate/M&A), Greg Bopp (Tax), Chris Olive (Financing), Sandy Brown (Regulatory), Tony Visage (Litigation), Jeff Whittle (Intellectual Property), Bruce Jocz (Employee Benefits), Eden Sholeen (Labor), Brock Bailey (Real Estate), Tim Wilkins (Environmental), Scott Segal (Government)
Associates: Justin Long, Ian Brown, Adam Adler, Shannon Weinberg, Linda Morgan (Corporate/M&A), Rhett Jackson (Tax), Jerry Sanchez (Regulatory), Mark Chretien (Intellectual Property), Allison Perry, Michael Tomberg (Employee Benefits), Mary Ann Hisel (Labor), Mason Griffin (Real Estate)
Foreign legal consultant: Jose Luis Vittor (Corporate/M&A)
This is interesting. What are the implications for Guilianni?
And from the first article, if this bank did break US law, will anything be done about it?
I would love to know those answers too.
I’m amazed the crickets this thread is receiving.
I have no idea why there is no interest in this subject. Maybe it’s too complicated and scary to think about. It will also be interesting to see how much attention if paid to this in the news media. But if no one here even cares about it, I doubt that the news media will pick up on it. My guess is a blurb here and there and no serious followup or mass coverage.
Iran poses a very serious threat to us and needs to be taken on or out. If we don’t act soon militarily, the day will come when we won’t have that option and we will be dealing with them just like we are with North Korea.
BTTT
Once upon a time, FR was full of news junkies that liked to sink their teeth into information. A story would get posted, a group of freepers were pinged, a bunch of freepers appeared to add on information and connect dots.
Now, I see endless posts of political talking points.
::shrugs::
Clinton's New Aid Package Is Intended to Ease Transition: Weaning Mexico From Foreign Investors
Morning!
Bump
Another reason not to vote for Rudy.
I’ll check back here later today. Right now I am headed out the door. Driving into town to meet my dad for coffee. Dad & I don’t see eye to eye on politics so that is one area I avoid with him. Other than that, he’s a pretty good dad! lol
Enjoy!
:)
Thank you for the information, I knew you would know more about this one, than I do.
Don’t ever stop, your research is of great value.
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