Use of Dual Nationals in Management of Iranian Banks Banned

The Central Bank of the Islamic Republic of Iran has prohibited the employment of dual nationals as managers in Iranian banks. According to a report on Tuesday, April 7, by the IRNA news agency, this ban has been communicated to the banking system in the new version of the 'Guidelines for the Qualification and Disqualification of Managers of Credit Institutions.' In this guideline, one of the general conditions for holding the positions of CEO, deputy, and board member of banks and credit institutions is stated as 'not having dual nationality.' Other conditions include having Iranian nationality for the CEO, chairman of the board, and the majority of board members and executive members, as well as adherence to Islam or one of the recognized religions in the Constitution. The guideline for the qualification and disqualification of the CEO and board members of credit institutions was drafted in September 2011 based on the Fifth Development Plan and communicated to the banking network. The revised version of this guideline was issued after five years, on March 13, 2017, signed by Abdolmahdi Arjmandnejad, the Director General of Regulations, Banking Licenses, and Anti-Money Laundering, and Hamid Reza Ghani Abadi, the Director of Banking Studies and Regulations. Compliance with this guideline is essential for banks and non-banking credit institutions established under the law or with the permission of the Central Bank and are under its supervision. The issue of dual nationals in management arose after Mahmoud Reza Khavari, the former CEO of Bank Melli, fled to Canada amid the infamous 3,000 billion tomans embezzlement case. In recent years, some conservatives and judiciary officials have named Iranian officials with 'dual nationality' as one of the most important channels of 'influence' in Iran and have repeatedly called for their dismissal. While Iranian judiciary officials have repeatedly reported the existence of dual nationals in the government, Mahmoud Alavi, the Minister of Intelligence, and other figures from the eleventh government have denied these reports. Mr. Alavi previously stated that there are 'no dual nationals' among Iranian officials and that the issue of dual nationals is one of the 'scenarios' that opponents have prepared against the government. Officials from the eleventh government argue that having a U.S. green card or residency permits in other countries does not equate to dual nationality. It seems that the Central Bank's action to ban the employment of dual nationals in the management of the Islamic Republic's banking system was taken in response to increasing pressure from conservatives in this regard. In this context, a member of the Security Commission of the Parliament stated: 'Dual nationality of Iranian citizens is a crime.' The Minister of Intelligence of Iran has given the Attorney General a deadline to introduce 'dual nationality officials.' The Attorney General stated: 'We have sent the list of dual nationals to the Ministry of Intelligence.' The Attorney General introduced 13 dual nationals to the Minister of Intelligence.