Swiss Bank Apparently Unfreezes Iran Arms Sales Account
A Swiss bank has apparently unfrozen an account used in U.S. arms sales to Iran because the U.S. government failed to back up its request that Switzerland lift banking secrecy on the account, banking sources said Friday.
Credit Suisse, which has acknowledged having one of the two accounts used in the Iran arms sales, last Friday effectively froze it after receiving indications that the United States intended to legally seek information on the account.
Under a mutual legal assistance treaty, banking secrecy may be lifted only when the infractions under investigation would have been a crime under the laws of both countries.
Joerg Neef, chief spokesman of the bank, said: “Unless the Americans support their request, we cannot continue the special watch we imposed indefinitely.”
Banking sources said that meant Credit Suisse had now lifted the controversial, self-imposed freeze.
Credit Suisse came under fire this week from bankers and lawyers who believed the freeze might be illegal.
The accounts were reportedly used to receive payments of up to $30 million from arms sales to Iran, and the proceeds may have been diverted to rebels fighting the Sandinista government in Nicaragua.
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