Economic Sanctions

"It was not a smart decision on their part, closing the accounts, without giving sufficient notice to their own clients to try to understand whatever transfer that was according to them, suspicious.  If it was suspicious, ask the questions before closing the account." Vincent Valai, Association des Juristes Persans du Quebec

"I can't understand why a bank would freeze an account when the person has the rights to transfer $40,000 to or from Iran.  If you have somebody retired, coming here and receiving his pension ... then it's legitimate and legal for him to be able to transfer."

Iranian-Canadians were aware of the rules pertaining to their transferring monies from Canada to Iran under the Special Economic Measure (Iran) Regulations of the Canadian government whose relations with the Islamic Republic of Iran are contentious to say the least.  Canadian financial institutions may not by law provide financial services to anyone in Iran or for the benefit of Iran.

These restrictions come out of international sanctions imposed upon the Republic of Iran through the United Nations and bolstered by the United States and the European Union through their international influence, in an attempt to apply economic pressure against Iran to persuade it to back off its intransigent nuclear aspirations. 

Iranian-Canadians were suddenly faced with an inability to use their TD Bank accounts.  Many had no prior warning.  TD Bank insisted it had sent letters to clients whose accounts they closed.  Not everyone involved received those letters, they were simply surprised when their banking transactions were shut off. 

This situation appears to represent a singular impression by TD Bank, one not shared by other banking institutions, on how to interpret the government's banking regulations related to Iran.  What is clear is that someone in authority at TD Bank decided to impose special measures in what they felt would be compliance with the Special Economic Measure (Iran) Regulations.

What they managed to do, in following up with their not quite brilliant idea was to confuse their clients and in the process also abuse their trust, while not in actual fact following the guidelines of the regulations that they insist they were responding to.  Section 5 part D of the regulation lists a series of exemptions for the sanctions between Iran and Canada.

TD Bank obviously did not read the fine print carefully enough.  The administration made a faulty decision, and followed through on their decision in a careless manner.  And yet, when questioned, their spokespeople declare "There is no further information we can provide to former customers at this time."  They may regret at a near future date, the attitude they have displayed toward loyal clients.

There may well be consequences to the accounts that have been closed in Ottawa, Montreal, Toronto and British Columbia, for those account closings have caused great complications for those former clients.  There may be a class action suit brought, legal action against the bank's cavalier attitude toward their responsibilities to clients, and their sloppy interpretation of a regulation that has given TD Bank a black eye.

"When you have people who have been treated like this, causing a lot of damage, I'm pretty sure it's always feasible to find some (legal) action."