How to Transfer Money Internationally in Today`s Iran

Posted on Posted in Business Guidelines

Due to recent sanctions on Irans banking system, nowadays it is difficult to transfer money to/from Iranian banks. This is a great problem as it will hinder trading with Iranian companies and is considered the most trouble-making obstacle on the way of Iran`s commercial and economic development. Importation and exportation will face a huge obstacle since money transference is an inseparable part of business in today`s world. The main problem is that Switzerland and World Bank Group sanctions are not still lifted causing Iranian banks to be separated and isolated from international banking system in spite of recent 5+1 talks to remove such sanctions.

For every problem, there is definitely a reasonable solution. Although a huge part of Iranian banks transactions is disabled by sanctions, there are still certain banks in some different countries which make banking deals still possible. Italy, Germany, Holland, France, Australia are some examples of those countries which have banks dealing with Iranian banks. It has to be said that not all banks in these countries deal with Iranian banks. There are certain banks with limited branches that are able to transact.

The second solution mostly used by Iranian firms and companies is exchange offices. The owners of these offices have several bank accounts in different countries. These bank accounts are international and connected to worldwide banking system. When an Iranian entity needs to receive money from his foreign counterpart, he/she gives that account (exchange office owner`s account) to the foreign entity for money  transference. The foreign entity pays to the account and the owner, after confirming the reception, pays the Iranian entity the equivalence of the money in his account. The owner also reduces a certain percentage as the fee for himself. This percentage varies between 3 to 10 percent.

International credit cards are very popular in Iran. These cards such as Master and Visa are mostly used for international purchase not sale because Iranian can only have cards which are not connected to international bank accounts (like gift cards). Iranian mostly use them to buy books (from amazon for instance), reserve hotels, buy tickets, join festivals, etc. That`s why money transference is not yet possible through international credit cards.

These transference obstacles really hinder trading with Iran and almost all of them have origins in political matters. What is important to know is that in every problem, there is an opportunity. These financial issues make it difficult for many foreign companies to enter into the rich market of Iran with a 80 million population. But those companies which conquer such problem and welcome Iranian market will certainly make a huge profit as they have no or few competitors in the same market. They can be the leading and only company in their field and make great changes where needed. We hope one day in near future all these barriers vanish away and all those who are interested in Iran`s market can have a word to say.

FAR Law Firm

One thought on “How to Transfer Money Internationally in Today`s Iran

  1. You actually make it seem really easy along with youur presentation but I fid this matter to be really something which I feel I would by no means understand.
    It sort of feels too complex and very large for me.
    I’m having a look ahead onn your subsequent submit, I’ll attempt to get the hold
    of it!

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