Over the next six months the Turnbull government and local banking regulators face a dilemma that could have profound implications for Australian banks and other financial institutions with operations in the United States.Last month an Iranian bank known as Bank Pasargad lodged intellectual property claims with local regulators for the right to use its commercial logos and trading names in Australia.The move is consistent with the bank's stated strategy of building an international financial services network to facilitate commerce between Iranian businesses and trading partners in the greater Asian region.Banking Day began researching Bank Pasargad last month and was told on 30 April by the Department of Foreign Affairs that the company was not subject to any trade sanctions imposed by the Australian government."Bank Pasargad is not listed for Australian targeted financial sanctions," the DFAT spokesperson said.A spokesperson for the Australian Prudential Regulation Authority refused to confirm or deny that the Teheran-based bank had applied to open a representative office or branch in Sydney.Bank Pasargad has marketed financial services in Iran since 2006 in accordance with Islamic banking principles.The bank is an innovator in its home market. It was among the first Iranian institutions to introduce internet banking, a move that has helped make it the country's fastest growing consumer and business bank.Bank Pasargad is part of a financial services conglomerate known as Pars Aryan that also markets insurance, investment advice, financial consulting and remittance services to clients mostly in Iran, but also in Europe and parts of Asia.Pasargad has put itself in the vanguard of efforts to renew Iran's links with the international banking system since trade sanctions against the country were loosened after the 2015 nuclear accord was signed with the United States and other members of the UN Security Council.Bank Pasargad now has more than 60 correspondent banking relationships across the globe, but none with US institutions where the prohibition on all dealings with Iranian banks continued after the deal struck with the administration of former President Barack Obama.Since 2015 the Turnbull government has actively tried to renew trading relations with Iran by sending several trade delegations to Teheran, including one led by foreign minister Julie Bishop.The recovery of the trading relationship was enhanced by the Turnbull government's removal of bans that prevented Iranian financial institutions from operating in Australia.While the recovery in trade has been slow, several Australian banks and the government-owned Export Finance and Insurance Corporation have helped to facilitate cross-border transactions between the two countries.However, the decision by US President Donald Trump to abandon the nuclear deal and reinstate rigid trade sanctions against Iran has put the Australian government and some local banks in an awkward spot.Under the executive order invoked by President Trump on Tuesday, any US or foreign bank doing business with Iranian entities will be exposed to sanctions by the US government.  Most of the new US sanctions that affect financial services institutions are expected to come into effect on 4 November.From that date any Australian lender that has a business