Iran: Iran And Austria To Expand Relations In Banking Sector

Last Updated: 4 August 2017
Article by Shanda Consult Ltd

Originally published 14th June 2017

Iranian Banks have established banking ties with two leading banks in Austria which 22 of these banks have linked-up with Oberbank, a major bank in Austria, to expand economic and banking relations between Iran and Austria.

The governor of the Central Bank of Iran (CBI) announced 22 Iranian banks have linked-up with Oberbank, one of Austria's largest banks, to boost economic and banking ties between Iran and Austria. 

Following the CBI governor, Valiollah Seif, recent talks with an Austrian banking delegation in Tehran, he stated that both countries' central banks have now forged closer relations. He said that Iranian lenders also have delightful relations with Raiffeisen Bank which is a credible bank in the EU.  

On Sunday, a meeting was held between Iran's top banking official and Austria's finance minister Hans Jorg Schelling and Governor of National Bank of Austria (OeNB) Ewald Nowotny in Tehran focused on further developing of mutual banking relations.

Hans Jorg expressed his satisfaction of the negotiations in Vienna and recently in Tehran. Also, he explained the importance of Iranian banks' improvement and stressed its significance for Austria.

Jorg said our continuous discussions during trips to Tehran, showing our determination to accelerate the development of banking and economic interactions between two countries and we look forward to discussing further details of our relations.

He also mentioned the very fruitful training courses managed by OeNB and implemented by the Joint Vienna Institute for exerts of Iranian banks with the aim to increase their knowledge about Anti-Money Laundering/Combating the Financing of Terrorism.

Earlier, after Jorg's meeting with Ali Tayyebnia, Iran's Economy Minister, he announced that Oberbank has allocated €1 billion ($910 million) line of credit to invest in Iran's projects.

Another example that represents the decisiveness of Austria to improve its relations with Iran is to open an account in OeNB for Central Bank of Iran.

According to Ewald Nowotny, OeNB's governor, during previous meetings, they have reached the implementation stage such as the training courses that was mentioned above.

he also said Oberbank and Raiffeisen were active in Iran many years ago, when there were no limitations on business relations, and today and after lifting of sanctions, both banks have representatives in Iran for the purpose of assessing possibilities of investing in Iran's projects, signing agreements for business activities as well as banking and account opening services for Iranian banks.

An Iranian delegation headed by Tayyebnia, travelled to Vienna last year to discuss further banking relations between two countries and development of financial ties.

Valiollah Seif who was part of the Iranian delegation, pointed that Iranian banks should comply with the latest international banking principles, particularly those related to AML/CFT. "Iranian banks are gradually implementing the regulations–mostly those mandated by the International Financial Reporting Standards to improve transparency in financial statements. Since 2012, some 13 directives regarding the implementation of AML regulations have been notified to Iranian banks and now customers need to provide detailed information to open an account," he added.

According to chief of Central Bank of Iran (CBI), banking regulations will be completely revised during the next Money and Credit Council meeting and the requirements needed for the full implementation of IFRS regulations will be met by banking system of Iran.

CBI released the IFRS-based balance sheet templates in February to increase Iranian banks' financial transparency and the global operations. All Iranian lenders are obliged to submit their financial statements in line with IFRS guidelines.

In line with Austria, other countries such as Italy, Germany, UK, Switzerland, Norway, South Korean and Japan have improved banking ties with Iran.

Shanda Consult through its excellent network in Iran, cooperates with several Iranian banks and participates in many projects, co-managed by banks in Iran.

Shanda Consult assists in the preparation of proposals, execution of applications and licencing procedures for different purposes such as acquisition of foreign banks or establishment of branch in another country.

Shanda Consult is  assisting in bridging the communicative chasm between politics and the business world.

Please feel free to contact us for any consultation regarding your business investment needs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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