Bank of England licences to 3 Iranian banks

Following implementation of the JCPOA (see previous blog), the Bank of England has reactivated the licences of Melli Bank, Persia International Bank and Bank Sepah International, Iranian banks that were previously subject to EU and US sanctions, allowing them to resume operations in the UK.

The banks must come into compliance with several rules introduced during the period in which they were subject to sanctions before they can start trading. This will involve evidencing adequate capital, staff, and systems for risk management, governance, etc. They will receive assistance from the new Bank of England / FCA Prudential Regulation Authority, designed to encourage banks to gain regulatory approval and start operations by allocating specific resources to them.