HKMA Exercises Powers To Place Restrictions On Melli Bank
The Hong Kong Monetary Authority is imposing restrictions on Melli Bank's Hong
Kong branch to protect depositors, the territory's authorities announced last
week. The HKMA took its decision after consultation with the Financial Secretary,
John Tsang, and has subsequently exercised its powers under the Banking Ordinance
in respect of Melli Bank Plc (MB), a bank incorporated in the United Kingdom
(UK), to impose restrictions in relation to the affairs, business and property
of its Hong Kong Branch (MBHK). The HKMA’s primary objective in imposing restrictions in respect of
MBHK is to provide a measure of protection to the existing and potential depositors
of MBHK, following the publication on 24th June 2008 of the Council Decision
taken by the Council of the European Union to introduce financial sanctions
against MB and its parent Bank Melli Iran (BMI). The restrictions take immediate
effect. The Council Decision is given effect to in the UK by the Iran (European Communities
Financial Sanctions Regulations) 2007 and HM Treasury in the UK issued a notice
on 24th June 2008 in respect of the financial sanctions against BMI and MB.
Under the restrictions imposed by the HKMA, MBHK shall stop all payments and
shall not engage in new business including the taking of new deposits in Hong
Kong except with the approval of the HKMA. Customers with deposits maintained with MBHK may however withdraw their deposits
without the approval of the HKMA up to an aggregate maximum of HKD150,000 (USD19,200)
or its equivalent in any foreign currency. Customers of MBHK have been urged to contact the bank directly in case they
have any enquiries. A comprehensive report in our Intelligence Report series examining offshore banking jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report3.asp
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