Ministerial Correction

Tuesday 8th November 2016 Written Statements

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)]

During the Westminster Hall debate on Iran-UK relations on 12 October my hon. Friend the Member for South Norfolk (Mr Bacon) asked a question regarding a planned meeting with the US and Iranians on banking issues. In response to that question I answered,

“In fact, we discussed that matter in some of the forums we had with leaders who have come over from Iran. I am very much focused on going back to that committee. Unfortunately, the very people who wanted to attend felt that they might trigger the sanctions simply by being at the meeting to discuss this matter. That is the cautionary environment that we now face.”

The correct response should have been that we recognise there may be some concern from UK and European banks and businesses in engaging in Iran-related trade, particularly those which employ US persons due to fear of non-compliance with US sanctions. However, we place huge importance on tackling the issues that have been raised by the banking community, and want our banks to be able to support British companies working legally in Iran. It is in our economic interest, as well as Iran’s, to support legitimate business. After years of restricted relations some challenges remain, but we are committed to working through them with international partners, Iran and the banking community.

To address these issues the Foreign Secretary hosted a banking roundtable with Secretary Kerry and the US Office of Foreign Asset Control (OFAC) in London in May 2016. We subsequently arranged a second banking roundtable in July, to be hosted by the Foreign Secretary with OFAC and the Iranian Central Bank. Although the US participants arrived for the event, and were ready to engage, the Iranian delegation unfortunately did not attend, which led to the cancellation of the event. A meeting did, however, take place between the UK Government and OFAC officials to discuss the banking issues that we are working hard to resolve.

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