<div id="readability-page-1"><div><div><p>HSBC and Standard Chartered have become embroiled in allegations of a multimillion-pound scheme to launder money for Iran, The Telegraph can disclose.</p><p>The two British multinational banks are accused of “unwittingly” processing payments which it is claimed may be linked to a complex sanctions-evading conspiracy.</p><p>They are among five banks – including JP Morgan Chase, Citibank and Bank of New York Mellon – which have been ordered by a United States judge to hand over their records for inspection.</p><p>The revelation that major British banks have been linked to potential money laundering for Tehran comes as the White House threatens to punish any “foreign financial institutions” which support Iran.</p></div></div><div><div><p>Last week the US treasury department announced that it was “moving aggressively with Economic Fury, maintaining maximum pressure on Iran”.</p><p>In a statement, it said: “Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities.”</p><p>Relations between Sir Keir Starmer and Donald Trump have become increasingly strained over the Iran war. Last week, the US president threatened to rip up his trade deal with Britain after Rachel Reeves hit out at the “folly” of going to war without an exit strategy.</p><p>Mr Trump suggested that he could change the agreement he reached with Sir Keir last year, because of Britain’s lack of support in the Middle East.</p></div></div><div><div><p>According to documents filed in a US court case earlier this month, the Turkish branch of Kuwait Finance House (KFH) – known as Kuveyt Turk – “used front companies to hide underlying Iran connections”.</p><p>It is alleged that Kuveyt Turk used five banks – HSBC, Standard Chartered, JP Morgan Chase, Citibank and Bank of New York Mellon – as “correspondent banks”, meaning they process transactions in dollars on their behalf.</p><p>Documents submitted to the court allege that a transaction processed by Kuveyt Turk for $5.7m (£4.2m) involved the National Iranian Oil Company, which has been sanctioned by the US, EU and Britain.</p><p>Elsewhere in the documents, submitted to the federal court for the southern district of New York, it is alleged that recent payments in euros for equipment, which may be related to nuclear weapons and ballistic missiles, have been processed by Kuveyt Turk for two US-sanctioned companies.</p><p>The two companies – Khatam Al-Anbiya Construction and Arvand Petrochemical Company – are affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC).</p><p>Court documents allege that purchases processed by Kuveyt Turk relate to fan blades and a large axial fan, which are used in underground ballistic missile silos and “may be related to nuclear weapons and ballistic missiles”.</p><p>They go on to say: “Khatam Al-Anbiya Construction is one of the major arms of the IRGC, and is known for indirectly funding Hamas, Hezbollah, and the Iranian nuclear and ballistic missile industry.</p><p>“This is a complex money-laundering scheme involving payments by Iran to Kuwait-owned entities, including in US dollars. The evidence detailed above shows doctoring of records to hide sanctioned transactions.”</p></div></div><div><div><p>There is no suggestion that HSBC, Standard Chartered, JP Morgan Chase, Citibank and Bank of New York Mellon engaged directly or knowingly in sanction-evading activity, and no suggestion that they were involved in any euro-based transactions.</p><p>The details came to light in a case involving a dispute between Delaram Zavarei, an Iranian businesswoman, and KFH and its subsidiaries.</p><p>Ms Zavarei was a “vocal opponent” of the Iranian regime and openly criticised it on social media, court documents say. In 2002, she moved her family to Dubai and continued to manage her Iranian assets from there.</p><p>She claims that she was subject to a “politically motivated state-sponsored campaign” by the Iranian government, which also targeted her family and corporate interests.</p><p>Her lawyers allege that KFH and its subsidiaries “conspired” with Iran, through its state-owned entities, to steal millions of dollars worth of equipment from her oil and gas company, Energy Exploration and Development Company Ltd (ENEXD).</p><p>KFH and its subsidiaries were “rewarded handsomely” by Iran for “pursuing the conspiratorial vendetta” against ENEXD, court documents allege.</p><p>Lawyers acting for ENEXD argued that Kuveyt Turk, along with a second Turkish bank, was used by Iranian companies to process payments worth millions of dollars to KFH and its subsidiaries.</p></div></div><div><div><p>Ms Zavarei is preparing to launch a separate claim in the High Court in London, and her legal team has already issued a series of letters before action.</p><p>A legal expert in sanctions who is familiar with the case said: “My view from what I have seen is that each of the correspondent banks appear to me to have unwittingly become involved.</p><p>“I say unwittingly because some of these banks have already been fined hundreds of millions of dollars for processing Iranian payments and certainly wouldn’t want to continue to do so.</p><p>“Secondly these corresponding banks in my view do things properly and carefully in order to comply with sanctions. Thirdly all the corresponding banks will contractually prevent the banks like Kuveyt Turk from making payments that emanate from or have any links to Iran.”</p><p>Georgina Halford-Hall, chief executive of Whistleblowers UK, is supporting Ms Zavarei. She said: “The reason that this case has taken so long to surface is not only because of the complexity and the number of different moving parts, but because British laws fail to provide for whistleblowers like Ms Zavarei and others in this case.</p><p>“They are frightened for their personal safety and afraid that some of these entities could exert pressure or retaliation on their families in other countries. If we are to combat financial crime, we need a UK whistleblowing framework to set proper standards.”</p><p>HSBC, Standard Chartered, JP Morgan Chase, Citibank, Bank of New York Mellon and KFH declined to comment. Following an objection by Citibank, ENEXD has been asked by the judge to file an additional request for discovery based on new information.</p></div></div></div>

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<p>HSBC and Standard Chartered are facing allegations of involvement in a multimillion-pound money-laundering scheme linked to Iran. They, along with JP Morgan Chase, Citibank, and Bank of New York Mellon, have been ordered by a US judge to provide records for inspection. The accusations stem from claims that these banks processed payments for Iranian entities, including those sanctioned by the US and EU. The US Treasury has warned financial institutions against supporting Iran, indicating potential secondary sanctions. No direct involvement in sanction-evading activities has been suggested against the banks.</p>

- HSBC and Standard Chartered are implicated in a multimillion-pound money laundering scheme linked to Iran, alongside other major banks, after a U.S. judge ordered their records for inspection.  
- Allegations include processing payments for Iranian companies associated with nuclear weapons, with the Turkish bank Kuveyt Turk accused of using front companies to mask transactions.  
- Financial institutions are warned by the U.S. Treasury of potential sanctions if they continue to support Iran, highlighting the complexity of international financial compliance amidst geopolitical tensions.

The telegraph

Standard Chartered PLC

JPMorgan Chase

Bank of NY Mellon

HSBC Holdings Plc

Citigroup

STANCHART

HSBC HOLDINGS

Defiance Daily Target 2X Long JPM ETF

HSBC Holdings plc ADRhedged

Charteris plc

KU Holdings Co., Ltd.

LQR House

DT House Limited

London Finance & Investment Group P.L.C.

Toa Oil Company, Limited

Fuji Oil Company.  Limited

Oil States

Nano Labs

Chatham lodging Trust

CR CONSTRUCTION

CRCHI

Petrofac Limited

PetroNeft Resources Plc

Diversified Energy Company PLC

Invesco Energy Exploration & Production ETF

Expand Energy

HSBC 5xShortSG241213

JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

JPMORGAN CHASE & CO. 6%NON CUM DEP SHS REP 1/400TH PFD SER EE

JPMORGAN CHASE & CO. DEP REP 1/400TH (5.75% NON CUM PFD DD)

JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

JPMorgan Chase & Co.

JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

CITIGROUP INC 6.250 NON CUM SER II PFD WI

BANK OF NEW YORK MELLON CORP DEP SHS REPG 1/4000TH INT SER K PFD

CHATHAM LODGING TRUST 6.625% SER A CUM RED PFD SHS BEN INT

EXPAND ENERGY CORPORATION C/WTS 09/02/2026 (TO PUR COM)CLASS A

EXPAND ENERGY CORPORATION C/WTS 09/02/2026 (TO PUR COM)CLASS B

EXPAND ENERGY CORPORATION C/WTS 09/02/2026 (TO PUR COM) CLASS C

Banking giants accused of links to multimillion-pound Iranian money-laundering scheme