Report: Iran banks decline to work with Guard-linked firms

An Iranian newspaper says two leading banks have refused to work with companies affiliated with the Revolutionary Guard.

The hard-line Kayhan daily on Saturday reported that private Bank Mellat refused to transfer foreign currency last month for the Guard-affiliated Khatam al-Anbia, the largest contractor of government construction projects in Iran. It says state-run Bank Sepah refused to issue a letter of guarantee for a firm affiliated to Khatam al-Anbia.

Both banks reportedly cited international sanctions on the companies, without elaborating. The banks could not be reached for comment.

In June, the Financial Action Task Force, an international initiative to combat money laundering and terror financing, suspended measures against Iran. Hard-liners have since expressed concern that the government would sanction Iranian companies on behalf of the FATF.