This large, state-owned Iranian bank has a long history of challenging European Union sanctions.
Bank Saderat Iran was founded in 1952. As of 2023, the bank had approximately 1874 domestic branches down from 2335 in 2019.
Bank Saderat has several foreign branches, including one each in France, Greece, Bahrain, Uzbekistan, and Turkmenistan; two each in Oman, Qatar, and Germany; and seven each in Lebanon, and the UAE.
Several articles, congressional reports, and testimonies by the US State Department indicate Bank Saderat was the go-to bank for fund transfers from the Islamic Republic to Hezbollah.
In the United Kingdom, Bank Saderat has three registered companies: BANK SADERAT-IRAN BR001527 and BANK SADERAT-IRAN (FC005225), and BANK SADERAT PLC.
The bank also had a branch in Hong Kong, which has ceased place of business, according to the Open Corporates business registry.
Bank Saderat, in collaboration with Bank Melli, operates two joint venture banks: Future Bank of Bahrain and Arian Bank in Afghanistan.
The Future Bank of Bahrain was established in 2004 as a joint venture between Iran’s Bank Melli and Bank Saderat, and Bahrain’s Ahli Bank. Bahrain closed down Future Bank in the country in 2016. However, Future Bank’s branch on Kish Island which was opened in 2007 was still operational in 2017.
Arian Bank in Afghanistan was established on June 25, 2004. The bank lost its license to operate in Afghanistan in 2019 but its license was reinstated in 2020.
Below is a summary of the two cases involving Bank Saderat Iran and their interplay:
1. Bank Saderat Iran v. Council of the European Union (Case T-494/10)
- Summary: This case involved Bank Saderat Iran challenging its inclusion on the EU sanctions list. The bank argued that the restrictive measures, which included the freezing of assets, were unjustified and not adequately substantiated. The General Court reviewed the Council’s reasoning and evidence for imposing the sanctions and found procedural and substantive deficiencies. On February 5, 2013, the Court annulled the contested measures against the bank, ruling that the Council had failed to provide sufficient evidence linking Bank Saderat to nuclear proliferation activities or threats.
2. Council of the European Union v. Bank Saderat Iran (Case C-200/13 P)
Summary: This case was an appeal by the Council of the European Union against the General Court’s decision in Case T-494/10. The Council sought to reinstate the sanctions, arguing that the lower court had misinterpreted the legal framework and evidentiary requirements. On April 21, 2016, the European Court of Justice (ECJ) delivered its judgment. The ECJ upheld the General Court’s findings, agreeing that the Council had not provided sufficient evidence to justify the restrictive measures against Bank Saderat.