NEW YORK (CNNMoney.com) -- Germany's second-largest bank will join other European banks in discontinuing its dollar transactions with Iran, according to a report Wednesday.
Commerzbank said it will stop handling dollar transactions for Iran at its New York branch by Jan. 31, The Wall Street Journal said.
The new restriction will support the U.S. government's attempt to isolate Iran's economy. Over the past year, several European banks have cut ties with Iran's state-controlled banks, as a result of U.S. pressure.
The U.S. says banks provide unwitting support for Iran's efforts to back terrorism and build nuclear weapons.
Restricting Iran's financial ties to Europe is key to Washington's effort to isolate the country, the newspaper said.
In response to U.S. pressure, ABN Amro Holding NV, Credit Suisse Group and UBS AG of Switzerland, Credit Lyonnais and Société Générale SA of France, and Barclays PLC and HSBC Holdings PLC of the United Kingdom all limited or ended their dealings with Iranian banks during the past year, according to the Journal.
Iranian officials deny the nation's banks handle money for terrorist organizations or purposes, the newspaper said.
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