Monetary Authority exercises powers under Section 52(1)(A) of the Banking Ordinance to impose restrictions on Melli Bank Plc

Press Releases

25 Jun 2008

Monetary Authority exercises powers under Section 52(1)(A) of the Banking Ordinance to impose restrictions on Melli Bank Plc

The Hong Kong Monetary Authority (HKMA) announced that the Monetary Authority (MA) has today (Wednesday), on the advice of and after consultation with the Financial Secretary, exercised his powers under section 52(1)(A) of the Banking Ordinance in respect of Melli Bank Plc (MB), a bank incorporated in the United Kingdom (UK), to impose restrictions in relation to the affairs, business and property of its Hong Kong Branch (MBHK).

The restrictions take immediate effect. The MA's primary objective in imposing restrictions in respect of MBHK is to provide a measure of protection to the existing and potential depositors of MBHK, following the publication on 24 June 2008 of the Council Decision taken by the Council of the European Union to introduce financial sanctions against MB and its parent Bank Melli Iran (BMI). The Council Decision is given effect to in the UK by the Iran (European Communities Financial Sanctions Regulations) 2007 and HM Treasury in the UK issued a notice on 24 June 2008 ("Notice") in respect of the financial sanctions against BMI and MB. The Notice and its supplement can be found on the website of HM Treasury (http://www.hm-treasury.gov.uk./documents/financial_services/sanctions/releases/fin_sanctions_newsindex.cfm).

Under the restrictions imposed by the MA, MBHK shall stop all payments and shall not engage in new business including the taking of new deposits in Hong Kong except with the approval of the MA. Customers with deposits maintained with MBHK may however withdraw their deposits without the approval of the MA up to an aggregate maximum of HK$150,000 or its equivalent in any foreign currency.

Customers of MBHK should contact the bank directly in case they have any enquiries.

For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Peggy Lo, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
25 June 2008

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Last revision date : 25 June 2008