Iran tells its banks that the US Treasury has effectively cleared the way for doing dollar-dominated transactions with Iranian individuals and companies.

Iran says the US Treasury Department has effectively opened the way for non-American banks and financial institutions to proceed with dollar-dominated transactions with Iranians. 

The Central Bank of Iran (CBI) in an announcement has told the banks across the country that any failure by non-American banks to provide dollar-related services to Iranians is “unacceptable” in light of the US Treasury’s recent update on doing business with Iran.

“Providing dollar-related services [to Iranians] will no longer expose the non-American banks to the risks of sanctions provided that they stay clear of US financial system,” the CBI said in its statement.

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“Therefore, the non-American banks cannot use US sanctions against Iran as an excuse to fail to provide dollar-related services to Iranian individuals and entities.”

The Treasury Department in an updated guidance for doing business with Iran in the post-sanctions era said some previously prohibited dollar transactions with Iran by offshore banking institutions are allowed as long as they do not enter the US financial system.

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The CBI further in its statement emphasized that non-American banks cannot refrain from provide services even to companies that may be controlled by a person or organization still subject to US sanctions.

“Foreign banks and companies should not use the existence of certain ownership relations as an excuse for failing to provide services to Iranian banks,” read part of the statement that has been widely covered by the Iranian media.

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“It is necessary for the banks to openly come out and remind the foreign parties that such claims are against the commitments of the P5+1 with regards to the Joint Comprehensive Plan of Action (JCPOA).”