Due Diligence News & Media

Sanctions on Iran: What to know and How to Stay Involved

Iran Sanctions

The United States have recently imposed, or better yet, renewed sanctions on Iran that were previously lifted (two years ago). President Donald J. Trump withdrew from the multilateral deal, the Joint Comprehensive Plan of Action (JCPOA), under the influence that it contained “disastrous flaws” that posed a security threat. The implications of the sanctions on the economic state of Iran will and have already caused disruptions to imports and exports of goods and services. However, it is important to understand that business with Iran can continue with the right knowledge and ‘know-how’ of the operations within the country. Firstly, it is essential to understand what the sanctions entail in order to assess how your company can still enact business in Iran.

Sanctions – What to Know
The sanctions are divided in to two sets. The first set includes restrictions on:

  • Iran’s purchase of US currency.
  • Trade in gold and other precious metals.
  • Sale to Iran of auto parts, commercial passenger aircrafts and related parts/services.

This set of restrictions came into effect on August 7th.  Furthermore, a second set of restrictions are set to be implemented by November 4th. The second set includes:

  • Restrictions on sales of oil and petrochemical products from Iran.
  • Sanctions on Iran’s ports.
  • Restrictions on foreign financial institutions transacting with the Central Bank of Iran and other Iranian financial institutions.

Individual named entities, people, companies and even aircraft are also sanctioned. Both sets of sanctions will have impacts on the economy of Iran that may make it difficult to export to and import from. Sanctions on Iran have mainly prohibited the US and EU from conducting business as most banks in these regions will not accept payments from Iran. Nonetheless, there are many opportunities for the Middle East and other regions to continue their business arrangements within Iran.  For example, foreign banks that are most willing to cooperate with Iranian banks are: BCP, KBC and HALK Bank. Additionally, Iran has reopened branches in European countries and, importantly, in neighbouring countries such as the UAE. The seven emirates of the UAE are free to commence trade with Iran without concern over the imposed sanctions.

Stay Involved and Do Your Due Diligence
Cedar Rose provides services which can assist in the continuing of business within Iran, whilst remaining compliant and secure. With our vast database and high coverage of data within Iran, Cedar Rose offers a multitude of solutions that can benefit your business. There are two important investigations that Cedar Rose offers to support healthy and secure business arrangements in Iran, but can also be applied throughout the MENA region. Firstly, a Politically Exposed Persons (PEPs) investigation may be an imperative operation to take on-board, through our investigative due diligence team. This investigation will assess how politically exposed a business may be and it highlights the negative connotations that this may hold. Performing this check can mitigate potential risks of involvement, especially if a country has been sanctioned. Secondly, our Compliance and Regulatory checks may provide detailed information that can ensure a successful business arrangement. When sanctions are imposed there are many known implications, yet, there are also unknown and, potentially risky, implications that may need to be addressed. Our Compliance and Regulatory investigations are able to assess the risks and provide incomparable data through dedicated and meticulous research.  Additionally, the due diligence investigations can be performed globally or nationally, providing tailored made checks for optimum benefits.

Our due diligence reports come in a variety of specifications, from company checks, person checks and even affiliates and relationship checks of said person or company. The extensive nature of an investigative due diligence report provides a secure and professional solution to mitigate risks. Furthermore, we can offer bespoke or tailor-made reports, what you require to be included or researched from a variety of specifications. This allows for exact and specific investigations for direct and comprehensive answers to your concerns. When enacting business within a sanctioned country it may be wise to pre-emptively investigate to ensure a successful business arrangement.

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Written By Jack Evangelides, Marketing Intern

Sourced ImagePixabay

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

About the author

Jack Evangelides

Jack Evangelides

I am currently a Marketing Assistant at Cedar Rose.
I graduated from the University of Kent in Philosophy and Politics, two areas which I thoroughly enjoy researching.
In my leisure time I enjoy playing football, working on my website and, furthermore, I am a passionate animal lover, especially dogs, where I have 6 of my own.