Allegations Surface Against Major UK Banks in Iranian Fraud Scheme
Major UK-based banks HSBC and Standard Chartered face serious accusations of involvement in a multi-million-dollar scheme linked to Iran, targeting a businesswoman’s oil services firm. A US judge has ordered the banks to disclose records after Delaram Zavarei alleged that Iran defrauded her company, ENEXD, through a network of front companies.
ENEXD, headquartered in Dubai, plans to file a High Court lawsuit in the UK against these proxy entities, seeking compensation in the hundreds of millions of pounds. Court documents from the US reveal claims that the banks may have facilitated transactions breaching US sanctions against Iran, drawing renewed scrutiny amid escalating tensions between Washington and Tehran.
Businesswoman’s Claims and Regime Ties
Delaram Zavarei, a former singer turned entrepreneur, described the challenges of operating in Iran. She stated, ‘If you become a successful businessperson in Iran, you have to work closely with the regime or it will turn against you, steal your firm, and seek retribution.’ Zavarei further accused Western banks of overlooking obvious red flags in financial operations, potentially enabling sanctions violations and supporting Iran’s activities.
She emphasized the need for transparency, noting, ‘This application is about getting the proper paper trail. Accountability must follow the evidence.’
Details of the Alleged Conspiracy
At the center of the dispute is Kuwait Finance House (KFH), accused of orchestrating the scheme on behalf of Iran. In 2017, ENEXD supplied $15 million worth of oil equipment to Nordic Energy FZC, a firm owned by KFH. By 2019, the company refused to return the equipment, prompting legal action.
The London Court of International Arbitration ruled in ENEXD’s favor in 2021, but enforcement has proven difficult. A whistleblower provided documents allegedly showing Nordic’s owner colluding with Iran’s state oil company. The claim asserts that two Turkish banks, one controlled by KFH, routed payments through Western institutions, including HSBC and Standard Chartered, to the Kuwaiti parties involved.
Both Turkish banks have rejected the allegations outright.
Past Sanctions Issues and Potential Implications
While HSBC and Standard Chartered face no direct criminal charges in this matter, their histories include significant fines for previous US sanctions violations related to Iran. The unfolding case could prove embarrassing for the UK government and its royal family, given longstanding diplomatic and economic ties with Kuwait’s ruling family.
Central to the proceedings are leaked documents from an unidentified whistleblower, which the banks are seeking to trace. Neither HSBC nor Standard Chartered has issued a public comment on the allegations.
KFH strongly denies any involvement, describing the claims as ‘entirely false’ and affirming its compliance with sanctions. The bank stated it would vigorously defend against any UK legal actions and does not conduct transactions with the Iranian government or its state-owned entities, including oil firms.
