Taiwan's Mega International Commercial bank to sever ties to Taiwan-Iran clearing mechanism

Taiwan's Mega International Commercial Bank will immediately terminate its payment clearing mechanism between Taiwan and Iran in a response to the United States' sanctions on Iran, a senior bank official told Reuters on Monday.

The official declined to be identified as he was not authorised to speak to the media.

In August, three people familiar with the matter told Reuters Mega International Commercial Bank planned to terminate its payment clearing mechanism between Taiwan and Iran after November.

(With inputs from agencies.)