Business & Trade Committee Takes a Stand Against a State‑Backed Iranian Entity
The Business and Trade Committee has opened an inquiry into the possibility of sanctions against Petrochemical Commercial Company (PCC), a state‑backed entity from Iran. MPs are sounding the alarm while the UK tackles financial crime.
What’s the Drama?
- PCC allegedly used Lloyds and Santander UK to route hundreds of millions of dollars through shell companies.
- These banks are now being scrutinised for their role in moving funds that may violate U.S. sanctions.
- Both banks claim they’re cooperating with authorities and deny any violations.
Key Acknowledgements
During a Tuesday hearing, Kevin Hollinrake, Under Secretary of State for Enterprise and Markets, expressed being “disturbed” by the allegations. Likewise, Wayne Johnson, Co‑Founder and CEO of Encompass Corporation, emphasised the growing danger banks face.
He said:
“Banks must be vigilant and ready to respond, as they are consistently a target for financial criminals increasingly utilising the many options of company formation to mask true beneficial ownership.”
“These developments highlight the critical importance of robust KYC systems. Embracing Corporate Digital Identity platforms gives a unified, transparent source of truth—allowing banks to confidently mitigate risks, stay compliant, and make smarter decisions.”
Sanctions Story
- PCC and its UK subsidiary have been under U.S. sanctions since November 2018.
- Recent activities in London prompted the UK to investigate the entity.
What Happens Next?
- MPs will continue probing the alleged financial flows.
- The government’s Economic Crime and Corporate Transparency Act will guide how these investigations unfold.
- Both Lloyds and Santander will provide evidence that they adhered to all sanction regimes.
Stay tuned for updates on how this investigation unfolds—and remember: in the world of finance, the line between legitimate and illicit can sometimes feel wobbly. Banks are on the front line, and it’s their job to keep it straight.
