Lloyds and Santander accused of providing accounts for Iranian front companies | Banking

Two of the UK’s largest lenders, Santander UK and Lloyds Banking Group, allegedly held bank accounts for front companies that helped Iranian entities evade US sanctions, according to reports.

The news has rattled investors, who sold off shares in the two banks on Monday morning, amid fears that the lenders could face penalties if they are found to have in any way assisted Iran’s state-controlled Petrochemical Commercial Company (PCC).

The Tehran-controlled company has been accused by US officials of raising hundreds of millions of dollars for Iran’s Revolutionary Guards al-Quds Force,…