Six Small German Banks Continue Banking Transactions Related to Iran

German media have reported that six small banks in southern Germany continue to engage in financial transactions related to Iran despite U.S. sanctions against Tehran. Meanwhile, the German Foreign Minister has traveled to Washington for talks with his American counterpart. Several German media outlets, including Frankfurter Allgemeine, reported on Tuesday that six branches of Volksbank in southern Germany stated they would continue to finance companies exporting to Iran without concern for U.S. sanctions. According to Patricia Melfi, head of the International Competence Center managing foreign trade at these six banks, this decision was made last Thursday by the board of directors. Two weeks ago, U.S. President Donald Trump announced the withdrawal of the United States from the JCPOA, and U.S. Secretary of State Mike Pompeo announced on Monday that the 'harshest sanctions in history' would be imposed on the Islamic Republic of Iran. In recent weeks, major German banks, such as Deutsche Bank, Commerzbank, and DZ Bank, have implicitly or explicitly announced the cessation of their financial transactions with Iran. In previous years, several large European banks that violated U.S. sanctions against Iran or other countries were only able to return to their transactions with the United States after paying heavy fines. For instance, in 2014, the French bank BNP Paribas paid a fine of 9 billion euros to the U.S., and Commerzbank paid a fine of 1.5 billion dollars in 2015. According to German media, Patricia Melfi did not disclose the number of German companies currently working with Volksbank in Iran. She only mentioned that companies without transactions with the U.S. prefer to continue their dealings with Iran, and 'numerous requests have also been received from such companies for financing from Volksbank.' German media estimated that about 800 companies in the country traded with Iran last year using credit from Volksbank. Meanwhile, it has been reported that Heiko Maas, the German Foreign Minister who is visiting Washington, continues his discussions about the 'consequences of the U.S. withdrawal from the JCPOA.' According to the German news agency, Mr. Maas met with several members of Congress on Tuesday and is scheduled to meet with Mike Pompeo, his American counterpart, and John Bolton, National Security Advisor to Donald Trump, on Wednesday. Mr. Bolton had stated a few weeks ago that he believes European companies regarding Iran will 'ultimately align with the U.S.' However, the German Foreign Minister stated on Tuesday after meeting with several members of Congress that 'Germany and Europe are determined to take all necessary actions to preserve the JCPOA and keep Iran in it.'