Will the EU “SPV” survive Iran Deal?

On 19th October 2018 the FATF decided to continue the suspension of counter-measure on Iran, due to the political commitment and relevant steps Iran has taken since June 2016 to address its strategic AML/CFT deficiencies. However, until the full action plan is going to be completed, Iran will remain on the FATF public statement.

So how will the EU “SPV” survive the Iran Deal?

The SPV would serve as a barter system not to be connected to the US dollar-denominated international financial system nor requiring monetary transfers between EU countries and Iran.

Credits for oil or goods imported from Iran by one EU firm could be used to pay an EU exporter for its goods or services to Iran, without any funds being sent to the Middle East.

EU is genuinely ready to live up to its promise to keep the so-called Iranian nuclear deal alive. Either France or Germany might become the host nation for the “SPV”. This barter exchange would be ultimately important for Iran in order to live up to their commitments under the JCPOA.

If you would like to discuss the impact of Iranian Sanctions on your business in more detail please contact Jaap van Dijk.

Imposition of US Sanctions Against Russia

Sanctions against Russia by OFAC have secondary consequences for financial institutions. In case of facilitation of significant transactions for or on behalf of SDN-listed persons, the facilitating bank may lose … Read more

Magnitsky Act

The recent Danske bank scandal, particularly the activities of its Latvian branch, has made European Union to take concrete actions. On 10 December 2018, EU foreign ministers discussed a Dutch … Read more

Re-imposition of sanctions on Iran

Iran faces re-imposition of sanctions following the 180 day wind-down period which ended on 4 November 2018 due to the U.S. government re-imposed sanctions that were relieved pursuant to the … Read more

this website uses cookies to ensure you get the best experience on our website more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close