Page 28 - IRANRptJun18

as well as municipalities.
8.1.6 Banks specific issues
Iran introduces ban on banks dealing with cryptocurrencies
Georgia’s TBC Bank clarifies banking restrictions on Iranians
Iran’s central bank has banned Iranian banks from dealing in cryptocurrencies, including Bitcoin, over money-laundering concerns, state news agency IRNA reported on April 23. The country is in the midst of moves aimed at halting its currency crisis caused by steep devaluation of the Iranian rial (IRR) partly on concerns regarding Iran’s economic future given hostility from Washington.
“Banks and credit institutions and currency exchanges should refrain from any sale or purchase of these currencies or taking any action to promote them,” IRNA reported, quoting a central bank circular.
Iran in early April formally unified its official and open market exchange rates and banned money changing outside of banks. The move initially almost wiped out the black market but there are signs that it is returning as Iranians grow frustrated by the search for dollars at the official unified rate.
Largest Georgian lender TBC Bank has clarified new restrictions on Iranians conducting business in Georgia, including new rules on residency, the Financial Tribune reported on May 26. Iranians have used Georgia’s friendly banking climate in recent years to open private and business accounts, but the early May announcement by the US that it is unilaterally exiting the 2015 nuclear deal h as forced countries to reconsider their relations with Iranian companies.
Last week, the head of the Iran-Georgia Joint Chamber of Commerce, Sayedeh Fatemeh Moghimi, said of the blocking of some accounts held by Iranians in Georgia : "We have looked into this issue but [the banks] have responded vaguely." Many cases were related to resettlement and migration cases under investigation, while some were connected with sanctions the US is lining up against Iran, Moghimi said.
The Iranian daily reported that TBC has said that Iranian passport holders who fail to meet the new stringent rules will be barred from interacting with the bank. The new rules, however, do not seem to respond directly to the impending US sanctions aimed at Iran and traders and investors that choose to preserve commercial relationships in the country.
The TBC directive reportedly states that Iranian nationals holding a written contract or official purchase agreement are allowed to make deposits and purchase property and pay mortgages in Georgia.
8.1.7 Bank news
Swiss bank, Indian lenders, German DZ Bank drop out after US nuclear deal exit
A Swiss bank on May 29 suspended new transactions with Iran and said it was winding down Iran-related activities while two Indian banks reportedly asked exporters to complete their financial transactions with Iran by August. The moves from Swiss lender Banque de Commerce et de Placements (BCP) and India’s IndusInd and UCO come in the wake of US President Donald Trump’s May 8 announcement that Washington is unilaterally withdrawing from the multilateral Iran nuclear deal and is preparing
28 IRAN Country Report June 2018 www.intellinews.com