LONDON (IRNA) -- Bank Melli Plc has said that it plans to challenge the legality of EU sanctions imposed against it on Tuesday as a UK incorporated bank in British and EU courts.

“Bank Melli plc will be making an application before the UK courts for judicial review and seeking an interim injunction to suspend the application and/or operation of the EU decision in the UK,” it said.
“Melli Bank Plc will also be initiating proceedings before the European Court of First Instance to challenge the legality of this decision,” it said in a statement.
The move comes after the EU's secretariat journal, documented the sanctions decision, claiming that Bank Melli had “facilitated numerous purchases of sensitive materials for Iran's nuclear and missile programs” and provided a range of financial services.
But its statement said it was a UK bank, licensed and regulated by Britain's Financial Services Authority (FSA), and was “legally and functionally distinct from its parent.”
“It complies with all relevant sanctions and will continue to do so, and has an unblemished record of compliance with its regulators in the UK,” it said.
Bank Melli Plc adopted its operational autonomy in 2002 after it was approved by the FSA as conforming to all UK accounting standards and disclosures.
The EU sanctions to freeze the accounts of Bank Melli, which goes much further than the latest UN sanctions in March, which simply calls on member countries to “exercise vigilance” over the activities of Iranian financial institutions, including Bank Melli.
In its statement, Melli Bank Plc said it “deeply regrets the decision by the UK Government and the EU to include the Bank in the sanctions.”
“This decision is not only unjustifiable but will cause considerable inconvenience and concern to the Bank's customers and staff both,” it warned, but added in the interim, it would work with the UK authorities to comply pending a decision by the courts.