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Swiss bank to drop Iranian business

people getting cash
The sanctions against Iran are affecting the banking industry there. Keystone

A Swiss lender is suspending new transactions with Iran following US President Donald Trump’s withdrawal from the nuclear deal with Tehran. 

Banque de Commerce et de Placements (BCP)External link announced on Tuesday that it was wrapping up its activity in Iran in response to the US pulling out of the Iranian nuclear accord earlier this month. 

+ Swiss firms are wary of US sanctions

+ Swiss politicians are calling for resistance 

“We have suspended any new transaction related to Iran after May 8, 2018 and started the ‘wind down period’ within the framework of OFAC announcement,” BCP said in an emailed statement to the Reuters news agency, referring to the US Treasury’s sanctions enforcement arm. Founded in 1963, BCP has its headquarters in Geneva. 

Trump’s decision came with the re-imposition of US sanctions within 180 days. This has prompted several European companies to wind down business in Iran. For example, German lender DZ Bank is planning to halt financial transactions with Iran in July. 

Sanctions extend to any company that conducts business in Iran, which have been given notice by Washington to scale down activities.

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