Turkey bank regulator dismisses ‘rumors’ after Iran sanctions report

Turkey’s banking regulator urged the public on Saturday to ignore rumors about financial institutions, in an apparent dismissal of a report that some Turkish banks face billions of dollars of US fines over alleged violations of Iran sanctions.

“It has been brought to the public’s attention that stories, which are rumors in nature, about our banks are not based on documents or facts, and should not be heeded,” the BDDK banking regulator said in a statement, adding that Turkey’s banks were functioning well, Reuters reported.

The Haberturk newspaper on Saturday reported that six banks potentially face substantial fines, citing senior banking sources. It did not name the banks. One bank faces a penalty in excess of $5 billion, while the rest of the fines will be lower, it said.

Asked to comment, a spokesman for the US Treasury, which is responsible for US sanctions regimes, said only: “The Treasury doesn’t telegraph intentions or prospective actions.”

Two senior Turkish economy officials told Reuters that Turkey has not received any notice from Washington about such penalties, adding that US regulators would normally inform the Finance Ministry’s financial crimes investigation board.

US authorities have hit global banks with billions of dollars in fines over violations of sanctions with Iran and other countries in recent years.