WASHINGTON, Sept. 9 (UPI) -- The U.S. Treasury Department has banned an Iranian-owned bank from having any dealings, even indirectly, with U.S. financial institutions.
The department accused Bank Saderat Iran of being used by Iran to transfer millions of dollars to Palestinian militants, including $50 million to Hezbollah since 2001, The Washington Post reported.
The bank -- which has branches across the Middle East and elsewhere -- has also been used by Iran to funnel money to Hamas, the Popular Front for the Liberation of Palestine-General Command and Palestinian Islamic Jihad, the department said.
Iranian banks are already barred from doing business directly with U.S. banks, but U.S. banks were permitted to process payments involving Iran that began and ended with a non-Iranian foreign bank.
The Treasury Department's action ended such indirect access for Bank Saderat.
The action was part of a broader effort to curb Iran's nuclear efforts and discourage its support of terrorist groups, the department said.
