WASHINGTON, Jan 9: The US Treasury Department on Tuesday named Iran’s state-owned Bank Sepah as a proliferator of weapons of mass destruction and banned all transactions between it and US businesses.

“Bank Sepah is the financial linchpin of Iran's missile procurement network and has actively assisted Iran's pursuit of missiles capable of carrying weapons of mass destruction,” said Stuart Levey, Treasury's Under Secretary for Terrorism and Financial Intelligence.

In addition to prohibiting transactions with Bank Sepah, a major commercial Iranian bank, Treasury said any assets that it may have under US jurisdiction are frozen.

Mr Levey said the United States was urging other nations to join in the bid `to deny financial assistance to Iran's nuclear and missile programs’ as supported by a recently passed United Nations Security Council resolution.

In addition to Bank Sepah, the Treasury order names Sepah International, a wholly owned subsidiary of Bank Sepah in Britain and the bank’s chairman and director, Ahmad Derakhshandeh, as weapons proliferators.

In Tehran, Iran's chief nuclear negotiator, Ali Larijani, told Iran's Student News Agency ISNA: “This is not the first time that such measures of America take place and the bank harassments of America have happened in some cases, however these are not issues that can affect Iran's will.”

The US action was taken under an executive order by President George Bush signed in June 2005 and reflects the administration's determination to use US legal authority to pressure Iran to abandon its nuclear program, something Tehran has repeatedly insisted it will not do.

Mr Levey said Iran was `facilitating its proliferation and terrorism activities through the world’s financial system, using its state-owned banks and an array of front companies and other deceptive techniques’ to evade controls that responsible financial institutions put in place.

Levey said there was a growing movement by global financial institutions to scale back their dealings with Iran.—Reuters