Iranian Entities Allegedly Use Lloyds and Santander to Evade US Sanctions

Reports of sanction evasion lead to a drop in bank shares and raise concerns over UK's economic crime enforcement.

Iranian entities, including the Islamic Revolutionary Guard Corps, reportedly used accounts at Lloyds Banking Group and Banco Santander to evade U.S. sanctions.
The Financial Times report led to a significant drop in shares for both Santander and Lloyds, with Santander's shares falling as much as 5.8% and Lloyds by 1.8%.
UK government officials and MPs express concern over the alleged sanction evasion scheme, questioning the effectiveness of the UK's economic crime enforcement.
Santander and Lloyds have denied breaching US sanctions, stating their commitment to compliance with applicable sanctions laws.
The revelations raise questions about the vigilance of banks in adhering to sanctions laws and the potential reputational risk to the involved financial institutions.