Topical question asked in the House of Commons, by Douglas Alexander (Labour). It was answered on Tuesday, 29 November 2011 on behalf of the Foreign and Commonwealth Office.

Topical Questions

Question: I join the Government in deploring the Iranian Government's recent threats to downgrade diplomatic relations between Iran and the United Kingdom, and I welcome the sanctions imposed by the Chancellor of the Exchequer, which cut all ties with Iranian banks. Will the Foreign Secretary confirm whether those recent measures cover foreign subsidiaries of British banks, and foreign banks operating in the UK?

Answer: The measures apply to the UK financial sector—to credit and financial institutions here in the United Kingdom. They do not, therefore, apply to foreign banks that happen to operate in the United Kingdom. Of course, the necessary defining measures will set that out in detail. The sanctions will be quite far-reaching, particularly as we are joining the United States and Canada in the measures, and I expect other countries to join in as well.

Secondary information