Financial Services

"Tehran, Oct 26, IRNA - Export Guarantee Fund of Iran (EGFI) signed MoU with Hermes Insurance Firm of Germany and Swiss Export Risk Insurance SERV of Switzerland on re-insurance services to Iranian exports." (October 26, 2016).
 

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"Iran has signed initial agreements with Germany’s Hermes insurance firm and Swiss Export Risk Insurance (SERV) to provide cover for transactions with Europe, IRNA news agency says. The Export Guarantee Fund of Iran (EGFI) signed the agreements in Lisbon on the sidelines of the annual meeting of Bern Union, an association of private and state export credit insurers from around the world, it reported Wednesday. Under the agreement, the Iranian and European sides will cooperate on “exchange of economic, trade and banking information, reinsurance coverage, coinsurance, and training.” IRNA quoted EGFI Managing Director Kamal Seyyed-Ali as saying that European export credit insurers were increasingly interested in financing projects after the lifting of sanctions on Iran." (Press TV, "Iran signs deals with German, Swiss insurers," 10/26/2016).

"Western insurers are slowly reaching deals with Iran as they seek to re-enter a multi-billion dollar market although the pace of business is hampered by banking restrictions ten months on from the lifting of international sanctions...Aviation and energy are two sectors in focus, industry executives say, along with political risk cover, even if there have been few deals so far. Christian Bieri, EMEA reinsurance head at insurance group MS Amlin, said Iran was 'very much under discussion'. 'It’s very high up the agenda," Bieri said. "It's going to be something for 2017.' (Reuters, "Cautious Western insurers rebuild business ties with Iran," 10/21/2016).

"Western insurers are slowly reaching deals with Iran as they seek to re-enter a multi-billion dollar market although the pace of business is hampered by banking restrictions ten months on from the lifting of international sanctions...European export credit agencies are guaranteeing trade finance for Western companies doing business with Iran. France's Coface has signed an agreement with Iran to guarantee trade finance on behalf of the French government. Nevertheless, major transactions were yet to be concluded due to the banking issues." (Reuters, "Cautious Western insurers rebuild business ties with Iran," 10/21/2016).

"Western insurers are slowly reaching deals with Iran as they seek to re-enter a multi-billion dollar market although the pace of business is hampered by banking restrictions ten months on from the lifting of international sanctions...European export credit agencies are guaranteeing trade finance for Western companies doing business with Iran. Italian export credit agency SACE has also undertaken its first small transactions with Iran."The lingering risks should not be underestimated, however, as they might create problems ... legal, documentary, operational, for companies interested in building or restoring commercial or financial relationships with local counterparties," a SACE spokesman said." (Reuters, "Cautious Western insurers rebuild business ties with Iran," 10/21/2016).

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"During the Italian Government’s business mission to Iran, SACE signed three collaboration agreements with the major Iranian private banks - Bank Pasargad, Bank Parsian and Saman Bank - aimed at facilitating a more rapid and effective resumption of trade and investments in the Country, once the implementation day has been reached." (November 30, 2015).

"For the first time since lifted sanctions, Asian investors will have the chance to gain privileged access to bankable projects in Iran as the country opens its doors to foreign investment. MillionaireAsia will organize the inaugural 1st Iran Investment Summit to be held in Singapore on 26 October 2016 in collaboration with Basio Consultants & Services Ltd (Hong Kong), and endorsed by the Government of the Islamic Republic of Iran. Facilitated by His Excellency Javad Ansari, the Iranian Ambassador to Singapore, an extensive delegation from the country will be heading to Singapore, led by Keynote Speaker H.E. Dr Valiollah Seif, Central Bank Governor, Islamic Republic of Iran... Tech will also be an important subject at the summit with Fintech company and main sponsor, DasCoin leading the ranks." (PRNewswire, "MillionaireAsia Announces the 1st Iran Investment Summit to Take Place in Singapore on 26 October 2016," 10/17/2016).

According to its company website “Majority of our clients are from Middle East, Iran and are doing trade and investment in China, Hong Kong and the Far East.”

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"For the first time since lifted sanctions, Asian investors will have the chance to gain privileged access to bankable projects in Iran as the country opens its doors to foreign investment. MillionaireAsia will organize the inaugural 1st Iran Investment Summit to be held in Singapore on 26 October 2016 in collaboration with Basio Consultants & Services Ltd (Hong Kong), and endorsed by the Government of the Islamic Republic of Iran. Facilitated by His Excellency Javad Ansari, the Iranian Ambassador to Singapore, an extensive delegation from the country will be heading to Singapore, led by Keynote Speaker H.E. Dr Valiollah Seif, Central Bank Governor, Islamic Republic of Iran... Tech will also be an important subject at the summit with Fintech company and main sponsor, DasCoin leading the ranks." (PRNewswire, "MillionaireAsia Announces the 1st Iran Investment Summit to Take Place in Singapore on 26 October 2016," 10/17/2016).

"German lender DZ Bank will suspend financial transactions with Iran in July, it said, after U.S. President Donald Trump’s decision to pull out of the Iran nuclear deal created uncertainty over business dealings with the country. “We will completely suspend our foreign payment transactions related to Iran starting July 1st,” a spokesman for the Frankfurt-based bank said on Friday." (5/18/2018)

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"European banks are tentatively re-engaging with Iran as the Middle East’s second-largest economy slowly emerges from a sanctions regime that has kept it in the financial wilderness for years. Belgium’s KBC, Germany’s DZ Bank both confirmed when contacted by the Financial Times that they have started handling transactions on behalf of European clients doing business in Iran. Austria’s Erste Bank is preparing to do so. However, bigger European banks remain on the sidelines alongside their US rivals, scarred by a string of multibillion-dollar fines for earlier sanctions breaches in Iran. This is causing growing frustration among officials in Iran and Europe about the slow pace with which Tehran is being reconnected to the global financial system... the continuation of many US sanctions relating to other issues, such as facilitating terrorism, has made many international banks wary of working with Iranian institutions and individuals." (Financial Times, “Europe’s banks begin tentative return to Iran,” 4/3/2016)

"A senior Iranian trade official said three Russian banks have voiced their readiness to promote banking relations with the Islamic Republic in the near future in a bid to boost commercial cooperation between Tehran and Moscow. Speaking to the Tasnim News Agency on Monday, Mina Mehrnoush, the head of planning at Iran’s Organization for Trade Development, said that during a recent visit to Russia by an Iranian trade delegation, ‘good meetings’ were held with three Russian banks, namely Mir Business Bank, Tempbank and RFC Bank. Mir Business Bank, which is the agent bank of Bank Melli Iran, agreed to provide good facilities and open proper credit lines for Iran, she said. The Iranian trade official went on to say that other issues were also discussed in her meetings with Russian banking officials, including opening accounts for Iranian companies without having to make a trip to Russia. Mehrnoush further said that Tempbank will open a representative office in Iran within a couple of months. During her 4-day stay in Moscow, the Iranian official also met with representatives of about fifty Russian import companies." (Tasnim News Agency, “Iran, Russia to Boost Banking Ties,” 1/25/2016)

In 2016, CalSTRS designated Raiffeisen Bank Intl. as “Under Review” for potentially having ties to Iran. In 2017, CalSTRS designated Raiffeisen Bank Intl. as “Being Monitored” while it conducted further review of the company’s internal controls and
compliance programs. In 2018, CalSTRS removed Raiffeisen Bank Intl. after reviewing the company’s business with Iran and internal controls to prevent sanction violations.

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In a letter to CalPERs dated December 1, 2017, the company confirmed it is not engaged in the business targeted by the California Divest from Iran Act. 

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 A Raiffeisen spokeswoman says it has no exposure to Iran and “already pursued an extremely cautious business policy in connection with Iran.” (Max Colchester and Laurence Fletcher, “Iran Nuclear Deal Upheaval Shakes Up European Banks’ Outreach,” The Wall Street Journal, May 9, 2018.)

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In 2017 the U.S. state of California identified RZB as a company under review for potentially seeking to establish physical offices in Iran. 

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"Raiffeisen Bank International (RBI), as one of the major banks in Austria, plans to open a branch in Iran, Austrian Ambassador to Iran Friedrich Stift announced on Saturday. He made the remarks in Tehran on the sidelines of a meeting between the director of Iran’s Trade Promotion Organization, Mojtaba Khosrotaj, and the second president of the Austrian National Council, Karlheinz Kopf, Tasnim news agency reported." (Tehran Times, "Austrian bank plans to open branch in Iran," 11/1/2016).

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"Austrian and Iranian bankers met in Vienna in September to discuss the resumption of trade financing, people with knowledge of the plans said at the time. Austria’s top three banks, Erste Group Bank AG, UniCredit Bank Austria AG and Raiffeisen Bank International AG would be among the participants, according to the people, who asked not to be identified." (Bloomberg News, "Three Foreign Banks to Open in Iran, Central Bank Official Says," 11/1/2016).

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"Austrian and Iranian bankers are meeting in Vienna on Wednesday to discuss the resumption of trade financing, people familiar with the discussion said... Austria’s top three banks Erste Group Bank AG, UniCredit Bank Austria AG and Raiffeisen Bank International AG are all among the participants, the people said." (Bloomberg ,"Iranian Bankers Said to Meet Austrians to Resume Commercial Ties," 9/28/2016)

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Despite hopes of a new dawn for Iran's economy after nuclear-related sanctions were lifted, major Western banks are reluctant to do business with the Islamic republic for fear of US retribution. President Hassan Rouhani has said that to reach the target of eight-percent growth needed to modernise the industrial sector and relaunch the hobbled economy, Iran needs up to $50 billion in foreign investment every year. But without the big foreign banks, that looks impossible. "For the moment, the little European banks have agreed to work with us," said Parviz Aghili, head of the private Middle East Bank in Tehran. They include banks from Italy, Austria, Switzerland, Germany and Belgium, he said without naming them. "But not a single medium-sized or big bank has so far agreed to do it," he added... The limited number of institutions that do deal with the Islamic republic include Raiffeisen Bank and Erste Bank from Austria, Mediobanca and Banco Popolare of Italy, Germany's EIH, KfW and AKA banks, Belgium's KBC, ING of the Netherlands and Turkey's Halk, according to a banking expert in Tehran. "These banks have established working relations with the Iranian banks to open letters of credit for fairly small sums of 10, 20 or 50 million dollars." But they lack the resources to finance big projects like the deal struck between Iran and European aircraft manufacturer Airbus for 118 airplanes, or oil and gas development projects, the expert said. (AFP, "Iran banking hobbled by Western reluctance to engage," 9/13/2016).

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"A senior Iranian trade official says Austria's Oberbank and Raiffeisen Bank International (RBI) are now connected to Iranian banks. Tehran Chamber of Commerce Chairman Masoud Khansari said that the two Austrian banks have started opening letters of credit (LCs) for Iranian businesses, facilitating trade transactions between the two countries. He announced the news in Tehran on Wednesday on the sidelines of a meeting between Tehran Chamber of Commerce and a trade delegation from the state of Carinthia in southernmost Austria, headed by Christian Benger, the regional minister for economy, agriculture and tourism... Oberbank is an independent regional bank located in the heart of Europe and headquartered in Linz in the north-center of Austria and Raiffeisen Bank International is the central and the largest institution of the Raiffeisen Banking Group." (Press TV, “Austria’s Oberbank and Raiffeisen Bank connected to Iran market,” 5/26/2016)

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"Christian Benger, the regional minister of Austrian state of Carinthia for economy, agriculture and tourism, says there is high know-how technology in the fields of solar and other green energy resources as well as water management in Austria and the country is keen to help Iran in these areas. In an interview with the Tehran Times, Benger said, 'There is also high know-how in Austria for recycling plastics. You have petrochemical industry and we have technology to recycle your products, so a lot of opportunities we can develop.' The interview came on the sidelines of a meeting between Benger, heading a high-ranking trade delegation, and Masoud Khansari, the chairman of Tehran Chamber of Commerce, Industries, Mines and Agriculture, in Tehran on Wednesday. The Austrian minister mentioned problems with the banks and money transfer as the main downside for business in Iran, while noting, 'I think this will be solved in the very near future.' Austrian banks help remove this obstacle, Benger said, adding, 'Raiffeisen Bank is one of the main Austrian banks in the international business. It's the Austrian control bank, which controls every international money transfer. This bank and all other banks are active and support resolving this problem. So, solutions will be seen in the near future.'" (Tehran Times, “Austria keen to help Iran in green energy, water management,” 5/25/2016)

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"Iran said on Sunday that it had reached an agreement with Austria to receive payments for sales of oil and condensate to international clients through the country’s third largest bank, Raiffeisen Zentralbank Österreich AG (RZB). Hossein Yaqoubi-Miab, the director for international affairs of the Central Bank of Iran (CBI), said the CBI has reached a deal with RZB to open an account to receive euro payments by international clients for their oil transactions with Iran. Yaqoubi-Miab said the account will be opened within the next two weeks, adding that the Austrian bank has announced readiness to create a similar mechanism for other Iranian banks." (Press TV, “Austria’s RZB to receive Iran oil payments,” 4/3/2016)

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International bank conducting business with U.S. banks that service designated Iranian banks Bank providing services to UN3* Iranian banks. International bank with Iranian Accounts (Avi Jorisch, "Iran's Dirty Banking", 2010)