Brussels, 09/07/2009 (Agence Europe) - In a ruling made on Thursday 9 July, the Court of First Instance declared that it was justifiable for the Council of the EU to include the Melli Bank on the list of entities recognised as participating in nuclear proliferation or those owning or controlling them. The Melli Bank is the 100% Bank Melli Iran (BMI) controlled British subsidiary, which is itself controlled by the Iranian state.
According to the arguments put forward by Melli Bank, the obligations on its directors and employees under British regulation ought to be enough to ensure the harmlessness of its activities. The Court, however, claims that British regulation particularly targets money laundering, fraud and other crimes of this nature and measures to ensure that Melli Bank does not participate in any form of nuclear proliferation are not part of the British authorities' remit. Furthermore, the existence of national regulation does not guarantee that Melli Bank complies with this. In these circumstances, the Council's motive, although “quite succinct” according to the terms of the decision, is insufficient for justifying a freezing of the bank's assets.
On the question of proportionality, the Court illustrated a real risk that the bank's assets would be used to a certain extent in nuclear activities. Although it is nominally independent, the bank is, nonetheless, owned by BMI and closely linked to an organisation and the Iranian state, suspected of taking part in nuclear proliferation in a fairly direct way. The status of the British bank does not prevent the Iranian state having access in any way, event indirectly, to its assets. The freezing of Melli Bank's funds and assets, is therefore an appropriate way of fighting against this proliferation and implementing the relevant resolution of the UN Security Council. The Council of the EU has implemented this resolution under regulation 426/2007. The list including Melli Bank is part of the 2008/475/EC decision adopted on 23 June 2008. This decision blocked BMI European offices in London, Helsinki, Hamburg and Paris. The bank has two months to lodge an appeal against the decision, which will be limited to points of law. (C.D./trans/rh)