UK banks to meet Kerry to discuss dealing with Iran

Some of Britain's biggest banks will hold talks this week with Kerry, as they wrestle with the implications of last year's move to lift economic sanctions against Iran.

The British Bankers' Association (BBA) has circulated a note to its members inviting them to send senior representatives to a meeting with Kerry, who will be in London to attend an anti-corruption summit.

The discussions will be held against an uncertain backdrop for UK banks, some of which are keen to do more business with Tehran but remain nervous about the consequences of deals which may be frowned upon by Washington.

Sources said the meeting had been proposed by Philip Hammond, UK Foreign Secretary, and would also include executives from French and German lenders.

Kerry has sought to allay concerns among foreign banks about forging new ties in Iran, saying last month that the US "is not standing in the way, and will not stand in the way, of business that is permitted in Iran since the (nuclear deal) took effect".

This week's meeting will take place just weeks after the banking industry's main lobbying group moved to establish a high-level panel to navigate the removal of western sanctions against Iran.

The BBA declined to comment on the invitation to its members to the meeting with Kerry, but has previously confirmed to Sky News that its Iran working group was in the process of being set up.

British banks have come under pressure from the Government to expand links with Tehran ahead of a trade visit to Iran led by Sajid Javid, the Business Secretary, which is due to take place later this month.

UK-based exporters have complained that they have already slipped behind their competitors from France, Germany and Italy because of a lack of support from the British Embassy in Tehran, which reopened last year, having been closed since 2011.

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