Chinese Bank's Call to Reopen Blocked Accounts of Iranians

Majid Reza Hariri, the Vice President of the Iran-China Chamber of Commerce, announced what he referred to as a 'call' from the Chinese to reopen the blocked accounts of Iranians. According to the Mehr news agency, Mr. Hariri stated on Tuesday, February 9, that the Iranian consulate in Shanghai has also 'officially announced this matter.' Earlier, the website of the Iranian consulate in Shanghai had briefly stated on January 17 that 'based on the statements of several Iranian students in Shanghai, the ABC Bank is gradually contacting them to carry out the formalities and reactivate their accounts.' According to Majid Reza Hariri, the 'ABC' Bank of China has issued a 'new call' for those Iranians whose accounts had been blocked in recent months, requesting them to visit bank branches to reopen their accounts. He added that the Chinese have taken a 'new step' to 'improve' banking relations with Iran, indicating that this action by China 'shows the removal of misunderstandings.' The Vice President of the Iran-China Chamber of Commerce also expressed hope that this process would continue from the Chinese side. These remarks come after reports in recent months from Iranian media about the closure of bank accounts of some Iranians residing in China. The Mehr news agency reported on August 7 of this year that China was 'unprecedentedly' blocking the accounts of Iranians one by one. According to this report, the reason given by three Chinese banks for closing the accounts of Iranians in the country was 'international sanctions' against Tehran. The names of these banks were also mentioned as 'ABC,' 'ICBC,' and 'Merchant.' Meanwhile, Asadollah Asgaroladi, the President of the Iran-China Chamber of Commerce, stated that China is 'closing the personal accounts of Iranians and is not concerned with Iranian companies registered there. Therefore, this action is not related to U.S. sanctions.' He mentioned that 'some Iranians have obtained tourist visas and are opening accounts in Chinese banks to buy and sell goods, and currently, China is gradually blocking the accounts of these individuals.' Asadollah Asgaroladi attributed the reason for closing these accounts to 'money laundering,' adding that 'because these individuals do not pay taxes, nor can they provide statements and documents showing where this money comes from.' The President of the Iran-China Chamber of Commerce also stated that most of the 'smuggled' goods entering Iran from China are also 'through these personal accounts,' in such a way that 'goods are imported through a buyer from China, and since they cannot enter through customs, they enter the country through non-customs channels.' The website Eghtesad News also reported three months after announcing this news, under the title 'Chinese Banks Playing Again with Iranian Accounts,' about the blocking of accounts of Iranian students residing in China. The ISNA news agency also quoted 'an official from the Iran-China Joint Chamber of Commerce' whose name was not mentioned, stating: 'The accounts of Iranians that have been closed in China are personal accounts.' According to him, Iranians in China, 'tourists or students, open personal accounts without work permits and conduct business with those accounts, and large amounts circulate in their accounts, which are being closed by the Chinese.' This 'official' also added that 'this is natural; in Iran, if there are high financial transactions in a personal account that has not been declared to the tax authorities, the account holder will definitely be summoned. These cases relate to FATF regulations and anti-money laundering laws that must be adhered to.' The news of a Chinese bank's call to reopen the blocked accounts of Iranians in the country comes after members of the Islamic Consultative Assembly agreed to a bill for Iran's accession to the United Nations Convention against Transnational Organized Crime. Although these members of parliament say the bill includes combating crimes such as human trafficking and drug trafficking, one of the conditions for Iran's full accession to the global banking and financial system is the acceptance and implementation of the regulations of the Financial Action Task Force (FATF). The FATF, which fights money laundering and terrorist financing worldwide, had previously asked Iran to implement necessary reforms in this area, especially regarding deficiencies in combating money laundering and terrorist financing sources. Previously, Ali Tayebnia, the Minister of Economy, had announced that without cooperation with the FATF, even with the lifting of nuclear sanctions, there would still be no possibility for international banking transactions for Iran.