Lloyds and Santander shares slide on sanctions evasion report

This is after a Financial Times report claimed that Iran used accounts from the banks to move money around the world as part of a sanctions-evasion scheme backed by Tehran's intelligence services, as IGTV’s Angela Barnes explains.

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Santander and Lloyds

Shares in Santander and Lloyds have seen a decline recently due to allegations made by the Financial Times. The report claims that these banks were involved in a scheme to help Iran evade international sanctions. The banks allegedly provided accounts to British-run companies secretly owned by an Iranian petrochemicals company that was under sanctions.

Lloyds' shares

Santander's share price has decreased by 5.24% while Lloyds' shares have dropped by 2.04% in response to this news. The banks have responded by stating that they adhere to legal and regulatory obligations, including sanctions compliance. They also conduct investigations and take appropriate action if they identify any risks associated with sanctions.

Santander

The allegations raise concerns about the possibility of Santander and Lloyds assisting Iran in evading sanctions. These sanctions are implemented to pressure Iran to change its behavior in areas like nuclear development and support for militant groups. If found guilty of breaching sanctions, the banks may face substantial fines and damage to their reputation.

Investors are worried about the potential legal and financial consequences for Santander and Lloyds, which is reflected in the decline of their share prices. They fear that the allegations could lead to closer regulatory scrutiny and fines, which would affect the banks' profitability and public image. However, it's important to note that the drop in share prices is a response to the news and the actual impact on the banks' performance in the long run remains uncertain.

Both Santander and Lloyds will likely face further investigations to determine the extent of their involvement in the alleged sanctions evasion scheme. This will shed more light on the situation and help in assessing the potential consequences for these banks.