Central Bank seeks data on Iran credit at banks

The UAE Central Bank has asked banks in the country to provide it with information on whether Iranian banks have opened credit with them, the Arabic language daily Al Khaleej reported on Monday.

The request followed instructions to banks to freeze 41 Iran-linked accounts and to supply statements to the Central Bank on any financial transfers to the Persian nation in line with UN Security Council resolutions.

“Following its recent circular to banks regarding financial transfers to Iran, the Central Bank has asked banks in the country to present information on any credits opened by Iranian banks for commercial purposes,” Al Khaleej said, quoting unnamed banking sources.

“As for transfers, banks in the UAE have responded to the Central Bank circular and provided statements on all transfers channeled through them to and from Iran during August…banks are now awaiting new instructions for September.”

In a report last week, the paper said the UAE’s 51 banks had not halted any financial remittances to sanctions-hit Iran but that they have been asked by the Central Bank to provide data on such transfers.

It also revealed that the Central Bank, in a previous circular, has asked local banks to provide information on the expected impact of the sanctions on their financial operations with Iran, the largest regional re-export market for the UAE.

In June, the Central Bank told all financial institutions in the UAE – including banks – to freeze 41 accounts and stop remittances in the names of entities and individuals mentioned by the UN Security Council based on its Resolution 1929 on Iran connection. In a circular, the Central Bank stated that the move was "based on the Resolution 1929 (2010) adopted by the UN Security Council.

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