House Republican Leadership Chairwoman Elise Stefanik has called on Bank of New York Mellon (BNY Mellon) to provide transparency regarding its sponsorship of MTN Group, a South African telecommunications company. The concern arises from MTN Group’s connections to Iran’s Islamic Revolutionary Guard Corps (IRGC) and alleged involvement in funding Iranian state-sponsored terrorism.
Stefanik emphasized the seriousness of the issue due to MTN Group’s 49 percent ownership of Iran Cell, Iran’s largest mobile operator. U.S. authorities and courts have linked this entity directly to terrorist activities that harmed American servicemembers and civilians.
In her letter, Stefanik stated, “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.” She highlighted BNY Mellon’s role as a major global depository bank with significant responsibility for maintaining the integrity of U.S. financial markets and national security interests.
Stefanik also noted ongoing litigation revealing MTN Group’s ties to IRGC and support for terrorism. She referenced a recent decision by the U.S. District Court for the Eastern District of New York affirming claims against MTN under the Anti-Terrorism Act, marking it as a significant legal precedent.
Additionally, Stefanik pointed out concerns about Cyril Ramaphosa, MTN’s long-time chairman and current President of South Africa, citing his government’s opposition to Israel following a Hamas attack in October 2023. This includes accusations against Israel in the International Court of Justice (ICJ). She warned that South Africa’s growing alignment with Iran raises ethical and geopolitical questions due to their diplomatic and financial ties.
She further asserted that “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 supporting activities linked with terrorism.
Stefanik concluded by urging strict sanctions enforcement on Iran while holding BNY Mellon accountable for transparency and ethical responsibility. She expressed readiness to collaborate with oversight bodies on addressing these issues promptly.
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