By: Tyler Gieseke

Fourteen University of Minnesota faculty members have kept their word.

Last month, a group of professors sent a letter to TCF Bank protesting the financial institution’s notice to close at least eight Iranian University students’ accounts.

The professors promised to move their direct deposit accounts in defiance of the bank’s actions and, according to Karen Ho, associate professor of anthropology, all have done so.

Students and faculty spoke out after several Iranian students received closure letters in late December without explanation.

A week after the professors’ Jan. 22 letter, the bank responded with its own.

In its response, TCF explained federal laws it must abide by.

TCF expressed concern for the faculty members’ protest and outlined the bank’s legal obligations. According to the letter, banks are required to monitor transactions to prevent money laundering under the Bank Secrecy Act. Also, banks must follow economic and trade sanctions.

“In the course of performing this due diligence, the institution may be required to … close an account and discontinue the customer relationship,” TCF said in the letter.     

Adherence to U.S. sanctions against Iran is “complicated,” the bank said in the letter.

“It is necessary that a depository institution ensure that funds do not originate from a U.S. blocked Iranian financial institution, and this may not be easy to do, especially when funds are deposited in cash.”

But faculty members working with the affected Iranian students said the students didn’t violate any laws.

Ho, the primary author of the faculty members’ letter, said she noticed TCF’s response didn’t state the Iranian students had violated the sanctions.

She also said the protesting faculty members felt the bank’s actions fit the profile of discrimination based on national origin.

They wouldn’t sue, though, she said, because TCF could use the sanctions as its defense.

“That, too, is a law,” she said.  

Although she said she was pleased TCF responded, she said the bank didn’t give the Iranian students an explanation when they followed up.

The fact that the students received a response through the actions of the faculty, she said, is demeaning.

“It was sort of a slap in the face,” she said.

Ho said some of the faculty members that closed their direct deposit accounts will also begin to move their TCF mortgages and other accounts.

“I will close my accounts. And that’s not up for negotiation.”