The US authorities have moved to seize the US assets of what they allege is a front company for the Iranian state-owned Bank Melli.

The US has blacklisted Iran's main banks Bank Melli, Bank Mellat and Bank Saderat.

This has effectively stemmed letter of credit (L/C) business with theseentities since banks worldwide feel it is too risky to do business with institutions designated under sanctions imposed by Washington.

Office tower

The authorities have designated New York-based Assa Corporation a front company of Bank Melli and moved to seize its assets.

The company's assets include a 40 per cent interest in a prestigious 36-storey office tower in Manhattan.

L/C services

US Treasury officials say that Assa supplied funds to Bank Melli, a bank that they say provided financial services, including opening L/C and provided other financial services for Iranian front companies and entities engaged in proliferation activities.

The US also alleges that Bank Melli has facilitated the purchase of sensitive materials used in Iran's nuclear and missile industries.

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