Lingering money laundering sanctions likely to delay resumption of trade finance business with Iran

Iran’s landmark nuclear deal with Western countries and the lifting of trade sanctions to follow opens the way for banks to resume links with the Islamic republic.

But lingering concerns about money laundering may deter some of the world’s largest banks from rushing to re-establish trade finance and other banking relations once more with Iran.

Sanctions remain

Banks including BNP Paribas, Commerzbank, Deutsche Bank, Crédit Agricole and Société Générale may be deterred from doing business with Iran for fear of once again breaching money laundering regulations.

While the headline deal with Iran has been struck, a complex web of US sanctions comprising Executive Orders and sanctions issued by Congress, could take some time to unpick.

Central banks concerns

Concerns have also been expressed over the speed with which the Central Bank of Iran will be able to implement global anti-money laundering measures.

Iran has not adopted the Basel Accords and it is unclear whether they will start with Basel II or go straight to Basel III.

In the absence of robust regulations, international banks may remain too cautious to do business with Iran.

Categories: Trade Based Financial crimes News

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