KEB Hana restricts services for Iranian customers

By Lee Kyung-min

Korean banks are tightening monitoring of Iranian customers, Wednesday, in a move to limit the negative impact of the U.S. government's possible secondary boycott, following the restoration of previously lifted U.S. sanctions against the Middle Eastern country.

The U.S Treasury Department said Monday (local time) it restored all economic sanctions against Iran lifted earlier by the previous Obama administration as part of a “maximum pressure” campaign. Primary targets include the energy, shipping and banking sectors.

KEB Hana Bank said Wednesday it sent notifications to its Iranian customers, asking for them to submit a request for account cancellation by Nov. 12. The bank has banned cash deposits and withdrawals since Oct. 31.

“We seek to ban Iranian customers from opening new accounts. We believe we have given them enough time since our last notice and the preventative measure is to avoid any unwanted consequences,” a KEB Hana official said.

This is the latest move in the management of Iranian customers' accounts, most of which are under close monitoring for money laundering activities, which could be used to bankroll the country's weapons programs.

KB Kookmin Bank currently allows opening of new accounts and banking services, but identification of account holders will be conducted more frequently, from once every year to every six months.

Woori Bank only allows new accounts to be opened with the approval of executive-level officials, following a thorough review to ensure the bank's service is used for personal purposes for students and workers, not for commercial reasons.