02 August 2018 - 11:00

Deutsche Bundesbank Passes Law to Hamper $400 mn Transfer to Iran

Germany's powerful central bank--Deutsche Bundesbank--passed on Wednesday a new financial policy that will effectively bar the transfer of nearly $400 million in cash to the Iranian regime.
News ID : 89338
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According to German BILD newspaper, the bank expanded its business conditions to include a section on "cash payment transfers" in order to reject financial transfers of partners of the Deutsche Bundesbank.

The BILD reported in July that Iran’s regime seeks to use the European-Iranian trade bank in the northern German city of Hamburg – with the approval of the German government – to transfer the nearly $400 million in cash to circumvent pending US sanctions.

Chancellor Angela Merkel's government--widely considered one of the most pro-Iran regime friendly European governments--has not commented on whether it will allow the roughly $400 million in cash to be sent to Iran to undercut the US sanctions campaign.

Previously, the US ambassador to Germany, Richard Grenell, urged the German government to block the payment to Iran.

It is unclear if the Merkel administration will shut the EIH based on the new US sanctions that will come into effect next week.

The Deutsche Bundesbank is a member of the European System of Central Banks and it carries great influence within the EU because Germany is the main economic engine on the continent.

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