Swiss Banks' Caution in Cooperation with Iran Due to US Threats

Mohammad Nahavandian, the head of Hassan Rouhani's office, explained the objectives of his recent trip to Switzerland and Sweden, attributing the caution of Swiss banks in cooperating with Iran to US threats. Nahavandian traveled to Switzerland on December 7 and during this trip, he discussed with Swiss President Johann Schneider-Ammann and Swiss bankers. According to Mehr News Agency, Nahavandian pointed to Washington's banking pressures against Iran, stating: "Swiss banks have faced 15 years of American penalties and have been subjected to various types of heavy oversight and regulations. Two major Swiss banks have paid billions in fines in this regard." He added: "110 Swiss banks are involved with American regulations, and the intimidation and threats from the Americans have made these banks cautious in their dealings with Iran." Although more than a year has passed since Iran's nuclear agreement with the 1+5 group and many sanctions related to Iran's nuclear program have been lifted, according to Hassan Rouhani, only small and medium-sized banks have established financial relations with Iran. The reason for the 'caution' of large banks is the heavy fines that the US previously imposed on European banks for violating sanctions. For example, the French bank BNP Paribas was fined $8.9 billion for 'violating sanctions'. After that, it closed the accounts of ordinary Iranian customers residing in France without any explanation. Credit Suisse was also fined $536 million in 2009 for its relations with Iran. The US has banned dollar transactions with Iran and banks cannot have relations with Iran using the US financial system. On the other hand, political developments in the US, especially the election of Donald Trump, who claims he does not accept the JCPOA, have further obscured the future of financial communications with Iran. Additionally, the approval of a ten-year extension of the Iran sanctions law in the US Congress is interpreted by Iranian officials as a violation of the JCPOA. Nahavandian stated that about 11 months after the JCPOA, Swiss and Iranian banks have conducted nearly $8 billion in banking operations with Iran. He mentioned that it has been proposed to Switzerland that Iranian banks be allowed to have branches in the country to facilitate dealings with Iran. Meanwhile, some Iranian newspapers have written that since Switzerland is the custodian of US interests in Iran, Nahavandian's trip may also be related to post-JCPOA policies between Iran and the US. In this context, 264 members of parliament have requested the government to take reciprocal action against the US. Rouhani: 'Will we allow them to tear up the JCPOA?' The JCPOA Monitoring Board: 'Necessary measures will be implemented with the extension of sanctions against Iran.' Zarif: 'Iran and China will not allow one side to disregard the JCPOA.'