Thursday, May 10, 2012
LONDON (Dow Jones)--Standard Chartered PLC (STAN.LN) has pulled out of Iran after decades of having a presence, the latest bank to exit the lucrative market amid mounting international pressure.
The departure of the bank comes as sanctions have forced most western banks to sever or downgrade ties with Iran.
Though Standard Chartered had signaled in 2007 it would stop taking any new business in the Islamic Republic after coming under U.S. pressure, it had continued to retain offices in Tehran and on the island of Kish.
But a spokesman for the bank said it closed down all its Iranian branches in the first quarter of this year. "We have been managing down our business in Iran" and "a physical presence was no longer required," he said.
Kristen Silverberg, the newly appointed president of New York-based pressure group United Against Nuclear Iran, welcomed Standard Chartered's decision to end its business in Iran.
"We call on other banks around the world to follow Standard Chartered by pulling out of Iran, and completely cut off the regime's access to international markets," said Ms Silverberg, a former U.S. ambassador to the European Union.
Following new sanctions against Iran's banking sector -- including a U.S. ban on dealing with Tehran's central bank -- top-tier financial institutions have stepped back from business with Iran in recent months. These include Societe Generale SA of France and Rabobank Group of the Netherlands.
The new measures are part of a broader international push against Iran's nuclear program. The west suspects the program has military aims, which Tehran denies.
-By Benoit Faucon; Dow Jones Newswires; +44 20 7842 9266; benoit.faucon@dowjones.com
(END) Dow Jones Newswires
10-05-12 1754GMT
