Iranian banks urged to move money

Jerusalem Post ^ | 6/9/2008 | Unattributed

[mojito]

The UK-based Daily Telegraph has reported that Iranian assets are being funneled back to Teheran using financial intermediaries in Dubai.

Iranian President Mahmoud Ahmadinejad reportedly authorized the transfers as fears rise that Iranian financial institutions may come under European Union sanctions.

The Iranian media has reported that the move caused tension between the president and the governor of Iran's central bank, Tahmaseb Mazaheri, and that Mazaheri may resign as a result.

Mazaheri took over the leadership of the central bank in 2007, as he replaced outgoing governor Ibrahim Sheibani who resigned due to Ahmadinejad's moves to influence the central bank's actions.

The Iranian president was accused of attempting to put into place "unscientific policies" by the economy minister who resigned in April.

The US has pressured the EU to level sanctions against Iranian financial institutions suspected of involvement in funding Iran's nuclear program and its support of terrorist organizations across the Middle East.

In March, the US succeeded in convincing the UN Security Council to adopt resolution 1803, which tracks two specific Iranian financial institutions - Banks Melli and Saderat.

Belgium is also weighing its own options due to Teheran's refusal to cease uranium enrichment activities.

The Iranian government has, according to reports of Western diplomatic officials, ordered Bank Melli to transfer funds currently deposited in Europe back to Iran. This comes after German banking authorities raided a branch of the bank in Hamburg in May.

The Germans demanded that Bank Melli freeze its operations until an investigation had been completed.

According to the Telegraph, EU officials are weighing an EU-wide ban on the bank.

However, European officials suspect that the majority of the bank's assets will have been transferred back to Iran before any such actions can be implemented. The officials were reportedly worried that Dutch banking intermediaries may be assisting in the transfer of assets back to Iran via Dubai.

While there is no implication that Dubai is directly assisting the activities, it has been known to have intimate economic ties with Teheran, with an estimated 10,000 Iranian companies being headquartered in the emirate. This, according to the Telegraph, renders any suspicious banking transfers difficult to detect.

[mojito]

Interesting development.

[piasa]

U.S. Hits Alleged Terrorist Front For Iran
CBS ^ | December 17, 2008
Posted on Wednesday, December 17, 2008 1:42:42 PM by Strategy

The Bush administration moved Wednesday to clamp down financially on a New York City business suspected of acting as a front company for Iran’s Bank Melli, which has been accused of providing support to Iran’s nuclear program. “This scheme to use a front company set up by Bank Melli - a known proliferator - to funnel money from the United States to Iran is yet another example of Iran’s duplicity,” said Stuart Levey, the Treasury Department’s under secretary for terrorism and financial intelligence.
(Excerpt) Read more at cbsnews.com ...