Vancouver– The reason why the Canadian government arrested Meng Wanzhou, one of the executives and daughter of the founder of the Huawei company, turned out to be related to US sanctions against Iran.

During a trial held on Friday (July 12) in a Canadian court, it was revealed that Meng was suspected of participating in a scheme to deceive financial institutions into carrying out transactions with Iran . This violates U.S. sanctions on Iran, which require any company that invests in or has business entities with the United States not to transact with Iran.

“Meng was directly involved in representing Huawei to banks that were carrying out transactions with Iran,” John Gibb-Carsley, a prosecutor with the Canadian Department of Justice, said in Vancouver on Friday.

Meng's arrest has raised fears it could disrupt relations between the United States and China, which are preparing to begin negotiations to end a trade war between the two countries.

Meng was arrested in Vancouver, Canada, on December 1, 2018, at the request of the United States. Mei's position as Huawei's CFO, as well as the daughter of the Chinese tech company's founder, has become a high priority in mass media and social media, especially in China.

In the indictment he read, Gibb-Carsley explained that Meng was suspected of being involved in attempted fraud. Between 2009 and 2014, Huawei used a Hong Kong company, Skycom Tech, to carry out transactions in Iran and do business with telecommunications companies there.

“U.S. banks that were conducting audits of financial transactions for Huawei inadvertently discovered that Huawei was doing business with Iran-linked company Skycom,” Gibb-Carsley said.