US official warns of Iran's 'illicit financial clout'

By Himendra Mohan Kumar, Staff Reporter

The US Undersecretary of Treasury for Terrorism and Financial Intelligence on Wednesday accused Iran of seeking to manipulate its relationships in the international financial system to pursue its nuclear agenda and missile programme besides aiding terrorist groups.

"In many ways, it [Iran] is seeking to use the relationships to move money, that's a principal threat," Stuart Levey told reporters at a news conference at the US Embassy in Abu Dhabi.

"Iran is engaging in deceptive financial conduct to pursue their programme and they are trying to do so in this region," he said.

Levey was in the UAE on a two-day official visit as part of a four-nation tour to discuss progress on measures to counter terrorist financing and other clandestine funding, with particular emphasis on Iran, and held talks with the leadership here. He said the UAE would have to safeguard itself from "illicit financial transactions and illicit commerce" as it transformed into an international, commercial and financial centre.

UN commitments

He expressed particular concern about operations of two Iranian banks in the UAE, Bank Saderat Iran and Bank Melli Iran.

"There's a challenge here in the UAE especially because of the deep financial, familial and commercial ties between UAE and Iran," said Levey.

He noted that the UAE had been very serious about obligations mandated under UN Security Council resolutions. "They also take seriously their commitments as a country that has articulated its support for the Financial Action Task Force principles and they take very seriously the future of their financial system and the reputation of their financial system."

The US has been saying that Iran's access to the international financial system enables the regime in Tehran to facilitate its support for terrorism and proliferation. It says Iran is the world's most active state sponsor of terror and, in a number of cases, Iran has used its state-owned banks to channel funds to terrorist organisations.

"Iran's pursuit of a nuclear programme in defiance of UN Security Council resolutions is viewed as a threat not just by the United States but all across the world, including in this region," said Levey.

Source: Gulfnews