US sanctions target Iran bank subsidiary

The US has imposed sanctions on the Malaysian subsidiary of Iran's Bank Mellat, saying it helped finance "proliferators of weapons of mass destruction".

The Treasury Department named the subsidiary as First East Export Bank, located in Malaysia's offshore financial centre in Labuan.

The statement banned dealings with the bank's chairman, Ali Divandari, saying he "plays a significant role in Bank Mellat's activities and decision-making processes".

Attempts on Friday to reach the subsidiary failed. No one answered calls to a phone number listed for the company.

The US says the state-owned Bank Mellat "has facilitated the movement of millions of dollars for Iran's nuclear program". The US has imposed sanctions on two other Iranian banks, citing the same concern.