Christ First Forum

UNITED NATIONS (Reuters) -- Turkey and other U.S. allies have been allowing Iranian banks with suspected links to Tehran's nuclear program to do business within their borders, frustrating Western countries trying to put a financial squeeze on the Islamic Republic, Reuters has learned.

An examination of classified reports and interviews with Western diplomats, government and intelligence officials underscore that Turkey and others have resisted international pressure to make it harder for Iran to finance its uranium enrichment program.

"Turkey's blossoming financial-economic relationship with Iran provides Iran with a gateway to the entire European financial system," according to an intelligence report on Turkey and Iran provided to Reuters by a diplomat. "The fact that Turkey is allowing itself to be used as a conduit for Iranian activity via Turkish banks and the Turkish lira is making it possible for Iranian funds in Turkish guise to make their way into Europe."

http://www.reuters.com/article/idUSTRE68J1QQ20100920