Iranian bank denies US accusations

Iran's state-owned Bank Sepah today denied US charges it was helping the country to acquire nuclear weapons and threatened unspecified…

Iran's state-owned Bank Sepah today denied US charges it was helping the country to acquire nuclear weapons and threatened unspecified legal action, an Iranian news agency said.

The US Treasury Department named Bank Sepah yesterday as a proliferater of weapons of mass destruction, banning US companies or citizens from doing business with it and blocking any of its assets that come under US jurisdiction.

"While denying all the lies we consider it as right that in the near future we will take up the case through legal channels," the bank said in a statement carried by the semi-official Fars news agency. It did not specify what legal action it would take.

"Definitely the decision made by US officials has a political background and is part of a bigger scenario," it said, adding that it would continue serving its customers. Iranian officials have already dismissed the U.S. move and said it would not stop their activities.

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Iran says it is pursuing nuclear energy for purely peaceful purposes while Western countries say they suspect the world's fourth biggest oil exporter is seeking to acquire nuclear weapons.

The news agency said Bank Sepah had reduced its trade in dollars in the last month, but did not elaborate. Bankers say most international banks have used euros or other currencies for transfers to Iran for some time rather than dollars due to pressure from Washington.