Iran Gets Around US Bank Sanctions

Bank Mellat, Iran's third largest state-owned bank, is getting around US-imposed sanctions by establishing links with small and medium-sized banks that have less US exposure than bigger lenders, its managing director said.

Ali Divandari told the Financial Times that US sanctions had failed to prevent the bank's "links with the international brokerage network", adding: "We managed to quickly replace other banks."

The US in October imposed unilateral sanctions against three of Iran's commercial banks - Melli, Saderat and Mellat - to choke off Iran's access to dollar financing and the US financial system.

Analysts say financial sanctions have hit Iran harder than the United Nations-imposed sanctions, which are largely restricted to nuclear- and missile-related activities and people involved in such activities.

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