Foreign banks Banking and insurance in Iran

1 foreign banks

1.1 foreign branches
1.2 mainland activities
1.3 free trade zones
1.4 sanctions

foreign banks

according cbi, 5 offices of foreign banks (as of may 2012) operate in tehran , kish free trade zone.

article 44 (fifth clause) of iranian constitution law had heretofore placed banking activities exclusively in hands of government. in tandem law on usury free banking operations, these 2 measures blocked foreign banking operations conducting business in mainland iran. in 2009 constitution amended allow foreign banks operate in mainland iran.

as of 2015, there no limitation activities of foreign banks in iranian free economic zones. may open branches , representative offices in mainland or hold 40% shares of independent unit.

foreign branches

the minimum capitalization establishing foreign bank branch in iran euro 5m. handful of foreign bank branches , representative offices extant in country allowed undertake administrative , coordination activities not permitted open customer accounts inside territory of mainland iran, receive deposits or extend normative facilities.

until now, foreign banks in iran have acted bridge between foreign companies same mother country in host country. foreign companies learned of iran s economic , investment opportunities through these foreign banks in country.

in 2010, iranian government lifted cap on percentage of shares in iranian banks can owned foreign individual or company. original law, applied both iranians , foreigners, restricted amount of shares in bank single company own 10 percent , individual 5 percent. iranian ownership of banks still subject limits.

according new rules, iranian government has authority form joint banks foreign entities. foreign entities can hold on ten percent of shares in joint banks iran shares cannot exceed more 49 percent. under same provisions, foreign individuals , entities have @ least 51 percent iranian ownership shall considered iranian companies.

mainland activities

for first time since 1979 islamic revolution, iran set allow foreign banks establish branches in country , engage in normal banking operations.

in 2008, bank markazi (the central bank) formally officiated on opening of iran s first foreign bank branch in capital, tehran. iran-europe commercial bank, registered in hamburg, germany, majority owned bank of industry , mines of iran. second foreign bank created in iran joint iranian-venezuelan bank. of 2010, similar projects exist countries such russia, belarus , egypt.

in 2009, 4 banks, including citibank , goldman sachs applied opening branch in iran. banks made formal request central bank of iran (cbi) establish branch. if majlis , cbi approve request, these 4 banks set temporary branch in iranian free trade zone. , if can work according iranian banking law (i.e. usury-free banking), allowed open branches in tehran , other cities.

in 2010, tehran times reported [instead?] banks filing requests working in iran states in persian gulf , middle east regions asia .

free trade zones

minimum capitalization bank operating in iran s ftz $100 million (2016). foreign banks operate in iran s free trade zone areas many years , there 3 such banks on iran s kish island in persian gulf (2012). iran’s majlis (parliament) has ratified bill establishment of domestic-foreign joint banks , insurance companies in free trade zones.

sanctions

the united states attempting isolate iran international financial , commercial system in effort promote policy change in iran regarding nuclear program , purported terror financing.

in 2006, swiss banks ubs , credit suisse abn amro , hsbc - decided end operations in iran. ubs announced had stopped doing business iran because of company s economic , risk analysis of situation in country. ubs stated no longer deal individuals, companies or state institutions such central bank of iran.

bank melli, saderat , sepah iran s 3 largest banks. have been hit un , sanctions on past 2 years, on alleged links iran s nuclear , missile programmes (2008). malaysia , u.a.e cooperating united states in implementing international sanctions against iran.