Central Bank Governor: Only Large Banks Fear Relations with Iran

The Governor of the Central Bank of Iran stated that large banks are hesitant to establish banking relations with Iran due to penalties imposed by the United States, while small and medium banks do not have issues with Iran. According to the IRNA news agency, Valiollah Seif said on Sunday, April 24, during a meeting with the South African Minister of Finance in Tehran, that sanctions currently do not impose restrictions on Iran's banking activities with other countries except the U.S. He noted that in the agreement between Iran and the P5+1 countries, all sanctions related to Iran's nuclear program have been lifted, but primary sanctions remain that are unrelated to nuclear negotiations. Seif had previously stated on Friday, April 15, during a speech at the Council on Foreign Relations in the U.S., that Iran is 'still not connected to the global economy' and urged the U.S. and the European Union to 'fulfill their commitments under the nuclear agreement' and take 'necessary actions to lift sanctions within the framework of this agreement.' However, he mentioned on Sunday regarding recent banking discussions between Iran and the U.S. that 'the topics discussed between the two countries ultimately led to the U.S. Secretary of State emphasizing European banks to cooperate with Iranian banks and stated that any bank that has doubts in this regard can contact Washington.' This references remarks by John Kerry, the U.S. Secretary of State, who said on Friday, April 21, during a meeting with the Iranian Foreign Minister that Washington does not oppose international banks cooperating with Iranian companies and institutions that are not under sanctions. The Central Bank Governor also mentioned in his meeting with the South African Minister of Finance that the Islamic Republic has taken appropriate steps in enacting laws to combat money laundering and financing terrorism. Seif's statements come as Eshaq Jahangiri, the First Vice President of Iran, stated on Saturday, April 23, that the oil sector has benefited from the achievements of the Vienna nuclear agreement and that the banking system should also benefit from these achievements. Jahangiri emphasized that the Iranian banking system has suffered more during sanctions than the oil sector. The government of Hassan Rouhani and Iran's nuclear negotiating team spoke of the complete lifting of international financial, banking, and economic sanctions against Iran after the agreement with world powers, but it gradually became clear that some past U.S. sanctions against the Islamic Republic, which were not part of the nuclear agreement, prevent Iran from fully benefiting from the advantages of this agreement.