WASHINGTON, D.C. — Today, House Republican Leadership Chairwoman Elise Stefanik issued a letter to Bank of New York Mellon (BNY Mellon) demanding transparency concerning its sponsorship of the South African telecommunications company MTN Group through its American Depository Receipts (ADR) program, which has ties to Iran’s Islamic Revolutionary Guard Corps (IRGC) and the facilitation of funding and support for Iranian state-sponsored terrorism.
Grave national security concerns stem from MTN Group’s 49 percent ownership of Iran Cell, Iran’s largest mobile operator, which U.S. authorities and courts link directly to terrorist activities that resulted in the injury and death of American servicemembers and civilians.
Chairwoman Stefanik wrote, "I write to you regarding deeply troubling and well-documented concerns about The Bank of New York Mellon’s (BNY Mellon) sponsorship of the South African telecommunications company MTN Group through its American Depository Receipts (ADR) program. As the number one global depository bank by number of sponsored ADR programs, and custodian of over $341 billion in ADR assets, BNY Mellon occupies a critical gatekeeping role that carries significant responsibility to uphold the integrity of U.S. financial markets and national security interests."
Stefanik continued, "Recent reports and ongoing litigation have revealed MTN Group’s extensive ties to Iran’s Islamic Revolutionary Guard Corps (IRGC) and the facilitation of funding and support for Iranian-sponsored terrorism. MTN Group owns 49% of Iran Cell, Iran’s largest mobile operator, which U.S. authorities and courts have linked directly to terrorist activities that resulted in the injury and death of American servicemembers and civilians. The U.S. District Court for the Eastern District of New York recently affirmed claims against MTN under the Anti-Terrorism Act, marking a significant legal precedent confirming MTN’s complicity."
Stefanik added, "Furthermore, MTN’s long-time chairman and current South African President, Cyril Ramaphosa, has amassed significant personal wealth through his association with the company. Ramaphosa’s government has aggressively opposed Israel following the Hamas terrorist attack on October 7, 2023, including filing genocide accusations against Israel in the International Court of Justice (ICJ). South Africa’s increasing alignment with Iran, an avowed sponsor of terrorism and antisemitism, poses profound ethical and geopolitical questions. The country’s diplomatic, ideological, and financial ties to Iran, including signing two memorandum of understanding with Hamas and support for Iran’s nuclear ambitions, exacerbate these concerns."
Stefanik said, "BNY Mellon’s role as a major strategic partner enabling U.S. pension funds, government entities, and other American investors to invest in MTN Group through your ADR program directly exposes the American public to financially propping up a company complicit in funding terrorism and antisemitic activities. This exposure is unacceptable and demands urgent corrective action."
Stefanik continued, “The United States must continue to ensure strict sanctions enforcement on the Iranian regime and prevent American financial institutions and investors from unwittingly funding terror networks. BNY Mellon must be held accountable to the highest standards of transparency, compliance, and ethical responsibility. I stand ready to work with you and relevant oversight bodies to ensure these urgent matters are addressed promptly and comprehensively."
Read the full letter here.
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