Woori Finance Holdings Co.’s banking unit and Industrial Bank of Korea (024110) halted transactions with Bank Tejarat as of Jan. 23 following U.S. Treasury Department sanctions against the Iranian Bank, South Korea’s Knowledge Economy Ministry said.
Seoul-based Woori Bank and IBK stopped offering credit and wire transfers of cash after Jan. 23 and the ministry will prepare measures to help local companies that may have difficulties as a result of the Iran trade sanctions, it said in an e-mailed statement today.
The Treasury Department last month targeted Bank Tejarat, Iran’s third-largest bank, for providing financial services to the country’s banks and companies that are under international sanctions for involvement in Iran’s nuclear and missile proliferation. Financial institutions anywhere in the world that do business with the bank risk being cut off themselves from the U.S. financial system.
Woori Bank said it stopped businesses with the Iranian lender via an e-mailed response to a Bloomberg News query. No one at Industrial Bank of Korea was available for comment and it didn’t respond to an e-mail seeking comment.
Asia Economic Daily earlier reported the banks’ move.
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