EIHB: Iran renounces controversial cash transfer

Because of the new US sanctions, Iran wanted to fly 300 million euros in cash from Germany. The US warned against terrorist financing, and BaFin intervened.

EIHB: Iran renounces controversial cash transfer

Iran has distanced itself from a controversial cash transfer of 300 million euros from Germany. The European-Iranian Commercial Bank (EIHB) does not want to pursue this project for time being, reported Süddeutsche Zeitung, NDR and WDR. The money should actually be flown from Germany to Tehran.

According to report, state Money House informed federal Agency for Financial Services Supervision (BaFin) about change of plans. The federal Government was also informed of decision. The Federal Ministry and Foreign Office did not want to express mselves on request.

Iran wanted to save fortunes for new American sanctions against an impending freezing of accounts. At beginning of June, Institute of European-Iranian trading bank in Hamburg had reported to Bundesbank that 300 million euro should be withdrawn in cash and brought to Tehran. The Bundesbank n turned on a unit of duty to check wher money should be used to finance terrorism. The US had warned against this and pushed for a rejection of money transfer.

The retracting of planned export is evident in connection with a current audit of BaFin at EIHB, media reported. The bank must demonstrate that it complies with all measures to prevent money laundering and terrorist financing. As Iran is on a list of so-called high-risk states of International Financial Action Task Force, this evidence seems to be difficult to provide, report said.

The federal government is currently seeking to preserve United States ' nuclear agreement with Iran and to protect European trade operations from impending US sanctions. Despite se efforts, more and more large German companies are withdrawing from Iran. In meantime, Iran has threatened to terminate agreement on several occasions.

Updated Date: 05 September 2018, 12:00

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