FRANKFURT—At least several European banks that vowed to stop doing business with Iran have kept handling billions of euros in transactions for Iranian entities and foreign companies with operations there, a review of regulatory filings and other documents by The Wall Street Journal shows.
The dealings aren't suspected of violating any sanctions, which are looser for the Continent's banks under European Union rules than prohibitions imposed by the U.S. But some government officials and banking experts said the banks are risking embarrassment or regulatory problems in the U.S. as it scrutinizes financial transactions with sanctioned countries.
"The risk to reputation and legal standing is great," said Iain Begg, a professor at the London School of Economics, adding that any bank still active in Iran could jeopardize its access to the U.S.
Germany's Deutsche Bank AG handled as much as $2.8 billion in transactions with Iran last year. Other banks still doing business in Iran include France's BNP Paribas SA, Banco Santander SA of Spain, ING Groep NV of the Netherlands and HSBC Holdings PLC of the U.K. … …. ….
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