Iraqi: Only Small European Banks Are Interacting with Iran

The head of the implementation office for the Vienna nuclear agreement in Iran, while accusing Saudi Arabia, Israel, and 'hardline lobbies in the U.S.' of fueling 'Iranophobia', announced that large European banks have not yet begun their 'interactions' with Iranian banks and that only small European banks are currently 'interacting' with Iran. According to the state news agency IRNA, Abbas Araghchi said on Sunday, May 26, in a television program that some 'medium and small' European banks have had 'interactions' and 'opened letters of credit' with Iranian banks. He emphasized that the 'overlap of primary sanctions' and actions by 'hardline lobbies in the U.S.', Saudi Arabia, and Israel, aimed at 'Iranophobia', have caused European banks to lack the necessary trust to cooperate with Iranian banks. According to Mr. Araghchi, the Iranian Foreign Ministry has exerted 'pressures' on the opposing parties to implement the Vienna nuclear agreement, and these actions have led European and American governments to take 'steps'. The Iranian Deputy Foreign Minister also accused Western parties of 'delaying' the implementation of the Vienna nuclear agreement but stated that 'it seems this problem is gradually being resolved'. Previously, Iranian officials, including Ayatollah Ali Khamenei, the leader of the Islamic Republic, had repeatedly accused the U.S. of scaring European companies and banks from trading with Iran, thus failing to adhere to their commitments under the nuclear agreement. However, Washington has repeatedly emphasized that it does not prevent foreign banks from cooperating with Iran. Three days prior to Mr. Araghchi's remarks, U.S. Secretary of State John Kerry assured executives of major European banks in London that the U.S. does not pose any obstacles for European banks in resuming trade relations with Iran. Meanwhile, Majid Takht-Ravanchi, Deputy for Europe and America at the Foreign Ministry, assessed John Kerry's negotiations with European banks as 'overall positive' but stated that 'we must see what happens in practice'. Washington has previously imposed heavy fines on several European banks for violating Iran's sanctions. However, following the nuclear agreement between Iran and world powers and the lifting of sanctions related to Tehran's nuclear program, the ground has been prepared for the resumption of foreign banks' connections with Iran. The foreign ministers of Iran and the United States also met earlier in May regarding this issue, after which both sides expressed hope that banks' concerns in this regard would be alleviated. In his remarks on Sunday, Mr. Araghchi also stated that 'weakness in financial discipline' among Iranian banks has 'not been without effect' on European banks' reluctance to cooperate with them, and that the Central Bank is working to address this issue. Hamid Tehranfar, former supervisory deputy of the Central Bank, reported on Saturday, March 15, that the Central Bank has requested the International Monetary Fund to express its opinion on Iran's banking regulations regarding anti-money laundering to alleviate the concerns of other countries, and this opinion will be announced in 2018. Valiollah Seif, the head of the Central Bank of Iran, also stated in May in an interview with CNBC that the measures taken in Iranian banks to combat money laundering and 'counter terrorism' have been communicated to the 'Financial Action Task Force'. The goal of the 'Financial Action Task Force', established by the initiative of the members of the seven major economic powers, is to combat money laundering and prevent the financing of terrorist activities.