Court sides with German bank’s decision to end Iranian account over U.S. sanctions risk
In this 2020 ruling, the European Court of Justice (ECJ) upheld the right of German bank Sparkasse Südholstein to terminate accounts with Iranian clients due to compliance with U.S. sanctions. The case, identified as C-639/18, revolved around the European Union’s Blocking Statute, which prohibits EU companies from adhering to certain non-EU sanctions, such as those imposed by the United States.
The name of the Iranian client, an individual identified only as “KH” in the court documents, has not been publicly disclosed.
The court clarified that while the Blocking Statute prevents the enforcement of foreign sanctions within the EU, it does not entirely preclude European businesses from taking protective steps if they can demonstrate a legitimate risk of repercussions from U.S. authorities. The ruling underscores a complex balancing act between EU legal autonomy and the influence of global sanctions, highlighting how EU companies navigate restrictive policies imposed by other countries.