Date: 23 June 2020
By Dr. Nima Nasrollahi
Partner at Elite Pars Law Firm
Iran is ramping up on its money laundering regulations by fixing a daily ceiling on cash transactions that can be administered by banks and financial institutions...
Iran is ramping up on its money laundering regulations by fixing a daily ceiling on cash transactions that can be administered by banks and financial institutions.
On 10 May 2020, a new resolution (Resolution No. 99/42451) was issued by the Council of Ministers pursuant to article 13 of the Executive By-Law of Anti-Money Laundering Act of Iran. The resolution sets a ceiling on daily cash transactions. Article 1(13) of the by-law requires the Council of Ministers to annually fix a ceiling for cash transactions in banks and financial institutions. The same ceiling would also apply to small transactions as defined in article 3 of Iran Tender Law. Iran Tender Law exempts Small transactions from the requirement of holding public tenders, which means that such transactions can be consummated at the sole discretion of the procurement department of state and government entities, without the need to hold a public tender.
The resolution fixes the ceiling of IRR 450,000,000 for small transactions, as defined in Tender Law, and cash transactions, as required under the Executive By-law of Anti-Money Laundering Act.
Financial Institutions have been barred from delivering cash in excess of this amount to individual clients. Under article 116 of Executive By-Law, any cash transaction in excess of this amount should be reported for money laundering investigations.
Iran is ramping up on its money laundering regulations by fixing a daily ceiling on cash transactions that can be administered by banks and financial institutions…
