Further Restrictions on Banking Relations Between China, Malaysia, and Dubai with Iran

A member of the Iran Chamber of Commerce reported that banking relations between China and Iran have become 'more limited,' and that Iranian traders' bank accounts in Dubai and Malaysia have been blocked. Ali Shariati made these statements in an interview with ILNA news agency on Tuesday (November 14). He linked this situation to the recent visit of the U.S. President to China but did not provide further explanation or evidence. According to the Iranian Labor News Agency, the Chamber of Commerce member stated that 'China had limited its banking relations with us weeks ago, especially with Trump's visit to the country, this situation has intensified.' Mr. Shariati added that, in addition, Malaysian banks 'informed some traders and even Iranian students a few days ago that they could not provide them with banking services.' This Chamber of Commerce member pointed out that the closure of Iranian traders' bank accounts in Dubai, Malaysia, and China in recent days has made 'bank transfers' the 'most significant problem' for Iran. According to this official, two years after the signing of the JCPOA agreement, 'banking problems for Iranian traders have not yet been resolved, and most major banks in the world are unwilling to accept the risk of trading with Iran.' Shariati also mentioned this issue as one of the main topics of discussion between Iranian traders and the 70-member European delegation that visited Tehran. He added that the unresolved banking issues between Iran and the West 'have involved both European traders and our traders.' Previously, Rex Tillerson, the U.S. Secretary of State, stated that the goal of the U.S. President's new strategy regarding Iran is not to interfere with or disrupt European trade relations with Tehran. U.S. President Donald Trump also stated in a television interview that he has no objection to Germany and France continuing their trade with Iran and 'making money from this country.' He said in late October on the Fox News program 'Sunday Morning Futures': 'I told them to continue making money from Iran. Don't worry. Just keep making money from Iran.' Meanwhile, the U.S. Secretary of State in Riyadh stated that the United States is 'hopeful' that European companies and countries will 'join the U.S., which has created a sanctions structure.' Following the suspension of sanctions against Iran in January 2016, trade relations between Iran and Europe began. Many European companies, including those in the automotive and energy sectors, have entered into deals with Iran. Others have begun investing in Iran or resumed their exports to Iran, so that the volume of trade between Europe and Iran has doubled, reaching $16 billion last year. However, according to a report by the Wall Street Journal on October 19, efforts to rebuild old trade relations with Iran have not begun by all countries and business units; many major European banks, due to the multi-million dollar fines imposed by the U.S. for violating sanctions against Iran, are not interested in re-establishing trade relations with Iran. European officials are seeking options to protect their companies against current or new U.S. sanctions against Iran.