Iranian Banks Notch Win In Dispute Over Sanctions Enforcement

November 26, 2021

Author: 

Joby Warrick and Souad Mekhennet

Publication: 

The Washington Post

Related Country: 

  • Bahrain

An international arbitration panel ruled in late November that Bahrain's government acted improperly when it closed Future Bank in 2015. The bank was a joint venture between Bank Melli and Bank Saderat, two Iranian banks that have been sanctioned by the United States. Bahraini officials argued that Future Bank had to be closed to protect investors from alleged corruption and sanctions violations. However, The Hague-based panel found that Bahrain's actions were not consistent with Bahrain's own banking laws and may have had political motivations, as Iran is a regional rival. It ordered the government of Bahrain to pay the banks more than $270 million in compensation, which Bahrain plans to appeal.