Iran denies banks involved in illegal nuclear activity

United Nations: Iran has denied Western accusations that its banks were involved in illegal nuclear activity and in financing terrorism.

The UN Security Council has imposed sanctions against Iran, including one calling on countries to "to exercise vigilance" on transactions with all Iran banks, especially Bank Melli and Bank Saderat.

France, Britain and the United States have said that Iranian banks were trying to get around the sanctions by covertly conducting transactions.

The three also warned in a letter to the Security Council against "Iran's continued attempts to conduct prohibited proliferation-related activity and terrorist financing."

Iran rejected the charge in a letter to the Council on Friday, saying Iranian banks "have never been involved in any illicit activities including in non-peaceful nuclear activities-- simply because there are no such non-peaceful nuclear activities in Iran."

Iran's deputy ambassador Mehdi Danesh-Yazdi said in the letter that the allegations were "baseless and absurd," and "a malicious attempt to unjustifiably dissuade others from dealing with Iranian banks."