DOCSLIB.ORG

NEWHORIZON Shawaal 1437 to Rabi Al Awwal 1438

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
NEWHORIZON Shawaal 1437 to Rabi Al Awwal 1438 ISSUE NO. 195 July to December 2016 NEWHORIZON Shawaal 1437 to Rabi al awwal 1438. GLOBAL PERSPECTIVE ON ISLAMIC BANKING & INSURANCE PUBLISHED SINCE 1991 CONFERENCE REPORT: UKIFC & ISRA THEMATIC WORKSHOP ON CORPORATE GOVERNANCE UPDATE ON INDIA: THE OPERATION OF ISLAMIC BANKS STILL OPPOSED IN INDIA BUT FOR HOW LONG? ANALYSIS: COPRORATE GOVERNANCE AND ISLAMIC FINANCE COUNTRY FOCUS: THE CHALLENGES FACING ISLAMIC BANKING IN IRAN EMERGING MARKETS: OPPORTUNITIES FOR ISLAMIC BANKING IN MAURITIUS NEWHORIZON July – December 2016 CONTENTS Features 16 UKIFC & ISRA Thematic Workshop on Corporate Governance This one-day workshop provided an opportunity for scholars, practitioners Regulars and regulators to reflect on the issues of Shari’ah governance, regulations and personal ethics. The workshop also included the launch of the External 05 NEWS Shari’ah Audit Report, which canvassed the views and experiences of A round up of the important scholars, regulators and other stakeholders across four jurisdictions – Oman, stories from around the globe. Pakistan, Bahrain and Malaysia, on external Shari’ah audits. 24 The Operation of Islamic Banks Still Opposed in 13 SUKUK UPDATE Highlighting some of the key India but for How Long? developments in the sukuk This article is based on a debate that took place on India’s NDTV channel market. late in 2016. Ostensibly the debate was about the Indian Government’s decision to demonetise large bank notes. It fairly rapidly, however, became 15 TAKAFUL NEWS a debate about Islamic banking. The debate highlighted some of the This section is dedicated to misunderstandings about Islamic banking and also the strongly held views of news from the growing takaful some elements of the Indian community who are vehemently opposed to its industry. introduction. 45 ON THE MOVE 32 Corporate Governance and Islamic Finance This analysis of the issue of corporate governance and Islamic finance 46 TECHNOLOGY looks at the need for Islamic banks to comply with the legal and regulatory NEWS requirements of the jurisdictions in which they operate and the additional This occasional section requirement for them to achieve Shari’ah compliance. It highlights the highlights some of the latest fact that there are occasions when complying with the broader regulatory technology developments and framework impacts on a bank’s ability to be Shari’ah compliant. implementations in Islamic finance 36 The Challenges Facing Islamic Banking in Iran For nearly 40 years Iran has, as a result of various political issues, been somewhat isolated from the international community. Its economy and particularly its banking and financial system has followed its own rather unique development path, but with the easing of sanctions in 2016, it began to look as though Iran would return to the international business fold. This feature looks at how the Iranian banking and financial system has developed; the problems it still faces and the prospects for the future. 41 Opportunities for Islamic Banking in Mauritius Didier Debellaire has a background working in Islamic finance in Mauritius. As part of hi s MBA dissertation he took a look at the development of Islamic finance in Mauritius and the prospects for the stronger growth of Mauritius as an Islamic finance hub Cover image – The Qutub Minar Tower, Delhi, India www.islamic-banking.com IIBI 3 EDITORIAL NEWHORIZON Shawaal 1437 to Rabi al awwal 1438 Executive Editor’s Note Deal not unjustly, and It is often tempting to view the Islamic finance industry as a now ye shall not be dealt established part of the worldwide financial landscape. It has with unjustly. standards setting bodies – AAOIFI (Accounting and Auditing Organisation for Islamic Finance Institutions) based in Bahrain and Surat Al Baqara, Holy Quran IFSB (Islamic Financial Services Board) based in Kuala Lumpur; it takes account of the need to maintain uniform Shari’ah compliance standards as well as international regulatory standards such as Basel EXECUTIVE EDITOR III; in addition to engaging with Islamic financial institutions and Mohammad Ali Qayyum, Shari’ah scholars it also engages with legislators and regulators and strives to improve Director General, IIBI and enhance the performance and increase the transparency of financial institutions EDITOR offering Shari’ah-compliant products and services. Yet, the industry is still viewed Andrea Wharton with extreme suspicion in some parts of the world and is prevented from offering its products and services to those who would clearly benefit from them. It is evident IIBI EDITOR that there is still work to be done before Islamic finance can claim to be a truly global Farida Rahman industry. IIBI EDITORIAL ADVISORY PANEL This dichotomy is amply illustrated in this issue of NewHorizon. On the one hand Iqbal Khan we report on the workshop that took place in London in late 2016 where scholars, M Iqbal Asaria Mohammed Amin practitioners and other stakeholders in the Islamic finance industry debated the Stella Cox issue of whether the current Shari’ah governance model is fit for purpose. The Richard T de Belder Ajmal Bhatty discussion was wide ranging covering topics such as whether Shari’ah scholars should Mufti Abdul Qadir Barkatullah be paid for their work; the case for a professional body with a code of conduct; the Dr Imran Ashraf Usmani need to ensure scholars are independent and not unduly influenced by the financial institutions that employ them and the positive role that openness and transparency PUBLISHED BY Institute Of Islamic Banking and can play. The debate reflected a mature industry that has the confidence to examine Insurance (IIBI) its own practices and where necessary reform them in order to enhance its reputation 7 Hampstead Gate 1A Frognal and instil trust among those who choose to engage with it. London NW3 6AL United Kingdom Tel: +44 (0) 207 433 0840 At the opposite end of the spectrum was the panel discussion aired on Fax: +44 (0) 207 433 0849 Indian television, which became distinctly heated and reflected some of the Email: [email protected] misapprehensions and indeed also misconceptions about Islamic finance that still persist in parts of the world. Most worrying was the belief expressed that Islamic ADVERTSING & SUBSCRIPTION Contact: banking was a sort of back door approach to achieving religious conversions. When even the Vatican’s own newspaper, Osservatore Romano, commented in 2009, ‘The Tel: +44 (0) 207 433 0840 Fax: +44 (0) 207 433 0849 ethical principles on which Islamic finance is based may bring banks closer to their Email: [email protected] clients and to the true spirit which should mark every financial service’ it is almost beyond understanding that such attitudes still exist. Design Services: So how does the Islamic finance industry address these sincerely held, if irrational, CxO Research Ltd Tel: + 0203 143 3021 beliefs? The answer has to be with great patience and understanding; by Email: [email protected] demonstrating its determination to nurture an ethical industry model that is open and www.cxoresearch.com transparent and by showing through its achievements its power to bring benefits to all communities irrespective of race or religion. ©Institute of Islamic Banking Mohammad Ali Qayyum and Insurance Director General IIBI ISSN 0955-095X This magazine is published to provide information on developments in Islamic finance, and not to provide professional advice.The views expressed in the articles are those of the authors alone and should not be attributed to the organisations they are associated with or their management. Any errors and omissions are the sole responsibility of the authors. The Publishers, Editors and Contributors accept no responsibility to any person who acts, or refrains from acting, based upon any material published in the magazine. The Editorial Advisory Panel exists to provide general advice to the editors regarding matters that may be of interest to readers. All decisions regarding the published content of the magazine are the sole responsibility of the Editors, and the Editorial Advisory Panel accepts no responsibility for the content. 4 IIBI www.islamic-banking.com NEWHORIZON July – December 2016 NEWS Emirates Islamic Reveals Survey Findings The UAE’s Emirates Islamic Bank among both Muslim (41% versus 33% in also highlights the key challenges has revealed the results of its second 2015) and non-Muslim consumers (42% for Islamic banks. For a second Islamic Banking Index by Emirates versus 40% in 2015). consecutive year, Islamic banks Islamic™. The survey focussing on lag behind conventional banks in consumer behaviour and attitudes Knowledge has also improved with 62% of technology, innovation and customer to Islamic banking in the UAE was banking consumers in the Emirates being service. launched in 2015. The index provides aware of at least one Shari’ah-compliant an annual benchmark of shifts in the banking product, a rise on the previous ‘The message to Islamic banks is ‘penetration’, ‘perception’, ‘knowledge’ year’s findings (59%). For a second year, very clear; we have to put customer and ‘intention’ of UAE consumers the best-known products remain takaful service and technological innovations when it comes to Shari’ah-compliant and murabahah, with 40% and 31% of at the heart of our growth strategies banking. This year’s results show respondents familiar with their use. and at the same time provide a value a positive increase in each of the proposition to our customers. It four segments, indicating that public The percentage of consumers willing is now up to us to seize the market acceptance, awareness and demand to consider Shari’ah-compliant banking opportunity and stay focused on for Islamic banking in the UAE are products has risen 4% to 79%. Notably ongoing improvements in our increasing. there is a sizable increase in the number of product and service proposition. non-Muslim consumers willing to consider The survey shows that penetration subscribing to an Islamic banking product, ‘Emirates Islamic has already made is increasing with 51% of the UAE’s from 59% in 2015 to 68% in 2016.
Load more

Recommended publications
  • Iranian Support for Terrorism
    OUTLAW REGIME: A CHRONICLE OF IRAN’S DESTRUCTIVE ACTIVITIES Iran Action Group U.S. DEPARTMENT OF STATE “America will not be held hostage to nuclear blackmail.” PRESIDENT DONALD J. TRUMP, MAY 2018 In recognition of the increasing menace posed by the Iranian regime, President Trump announced a new strategy to address the full range of the regime’s destructive actions. OUTLAW REGIME: A CHRONICLE OF IRAN’S DESTRUCTIVE ACTIVITIES A Letter From Executive Chapter One: 4 Secretary of State 6 Summary 8 Iran’s Support Michael R. Pompeo for Terrorism 18 Chapter Two: 22 Chapter Three: 26 Chapter Four: Iran’s Missile Illicit Financial Iran’s Threat to Program Activities in Iran Maritime Security Chapter Five: Chapter Six: Chapter Seven: 30 Iran’s Threat to 34 Human Rights 40 Environmental Cybersecurity Abuses in Iran Exploitation AP PHOTO OUTLAW REGIME: A CHRONICLE OF IRAN’S DESTRUCTIVE ACTIVITIES | 3 A LETTER FROM U.S. SECRETARY OF STATE MICHAEL R. POMPEO I am pleased to release the State Department’s new report detailing the scope of the Iranian regime’s destructive behavior at home and abroad on the eve of the Islamic Revolution’s 40th anniversary. On May 8, 2018, President Donald J. Trump announced his decision to cease U.S. participation in the Joint Comprehensive Plan of Action (JCPOA), commonly referred to as the Iran deal. The Iran deal was proving to be a failed strategic bet that fell short of protecting the American people or our allies from the potential of an Iranian nuclear weapon. The futility of entrusting our long term security to an agreement that will quickly expire was underscored by the recent bombshell that Iran had secretly preserved its past nuclear weapons research after the implementation of the JCPOA.
    [Show full text]
  • ANNUAL REPORT 2012 ENDURANCE Main Branch / Head Office P.O
    BETTERMENT THROUGH ANNUAL REPORT 2012 ENDURANCE Main Branch / Head Office P.O. Box 785 City Centre Building 199 Road 203, Block 304 Manama Town Government Avenue Kingdom of Bahrain Tel: +973 - 17505000 Fax: +973 - 17224402 Swift Code: FUBBBHBM Muharraq Branch P.O. Box 22309 Bldg 263, Road 311 Muharraq 203 Shaikh Khalifa bin Salman Avenue Kingdom of Bahrain Tel: +973 - 17322494 Fax: +973 - 17323644 Swift Code: FUBBBHBMMUH Budaiya Road Branch P.O. Box 70115 Shop No. 8 B Country Mall Budaiya Highway Kingdom of Bahrain Tel: +973 - 17596666 Fax: +973 - 17596111 Swift Code: FUBBBHBMSIT Tehran Representative Office No.20, West Nahid St. Africa Blvd. Tehran Islamic Republic of Iran Tel: +9821 - 22026101/22026409/22205104 Fax: +9821 - 26201311 FUTUREBANK B ANNUAL REPORT 2012 TABLE OF CONTENTS Financial Highlights 03 Chairman’s Statement 04 Board of Directors 06 Board Committee Members 07 Corporate Governance Report 08 Major Shareholders, Voting Rights & Directors’ Interests 12 CEO’s Statement & Management Review 14 Group Management 18 Group Management Committees 19 Organisation Chart 19 Financial Review 20 Auditors’ Report 23 Financial Statements – 2012 24 Disclosures 55 BUSINESS PHILOSOPHY Vision To be recognised as a Bank for its ability to build financial bridges connecting our customers and regional markets. Mission To maximise stakeholders’ interests by becoming the partner of choice for all those who value personalised attention. Purpose To serve the community with care and conscience and make a tangible difference to lives. Endurance is the
    [Show full text]
  • Energizing Digital Lending for Msmes
    Vol. 16 No. 2 June 2017 `75 Pages 56 Iranian banking Addressing NPAs AfDB annual meeting Utkarsh Small Finance Bank www.bankingfrontiers.com Energizing digital lending for MSMEs CA Abhay Bhutada Managing Director, TAB Capital Editor’s Blog Manoj Agrawal Mobile : 98673 66111 Email : [email protected] June 2017 - Vol. 16 No. 2 Group Publisher : Babu Nair Group Editor : Manoj Agrawal Banks, Robbers & Thieves Editor : N. Mohan wo news items caught my attention today (June 13). In Mumbai, a gang of thieves drilled a hole into the wall of a jewelry store and stole jewelry and cash valued Editorial Tat about `31 lakh. The gang had hired the adjacent shop and were doing a Mehul Dani, Ravi Lalwani, business of selling mangoes. V. Raghuraman, Surekha Galagoda The news report said that they were keeping a close watch on Research Editors the jewelry store and discovered Prof Venugopal Iyengar, V. Babu, that the surveillance camera had Ratnakar Deole, W.A. Wijewardena, stopped functioning. That is when Sanchit Gogia, K.C. Shashidhar, they made their strike. The KYC L.S. Subramanian, Ajay Kumar papers they had submitted to rent Advisor-Alliances the shop were apparently fake. Ateeq Siddique The other news item in today’s newspaper is that thieves broke Marketing into the strong room of PNB branch in Modi Nagar in UP. Here too the modus operandi Zahid Siddique, Arun D’Souza was to make a hole in the wall. The thieves broke up 30 safe lockers. Obviously, the Events & Operations customers who had rented those lockers were very angry. Gautam Magare, Shirish Joshi, Is breaking walls the new tactic of thieves? Typical of any place of value is that Stalin Saldhana, Pramod Jadhav, 5 out of 6 sides are walls/floor/ceiling.
    [Show full text]
  • Zarif Holds Talks with Aoun Some Countries in Regard to Humanitarian Issues
    ‘Iranian refugees in Total inks major gas Infantino offers German experts restore 21516Australia not in 5 deal in Iran condolences after artworks at Tehran suitable condition’ Pourheydari passing museum WWW.TEHRANTIMES.COM I N T E R N A T I O N A L D A I L Y VelayatiVe ururgesg EuEurope to wowork for pepeace in MMideasti 2 16 Pages Price 10,000 Rials 38th year No.12693 Wednesday NOVEMBER 9, 2016 Aban 19, 1395 Safar 9, 1438 Citizenship Rights Charter awaiting thumbs-up: ZZarifarif holdsholds ttalksalks wwithith AAounoun presidential advisor EXCLUSIVE INTERVIEW POLITICS TEHRAN — Iranian The visit came days after Aoun desk By Maryam Qarehgozlou&Ali Kushki Foreign Minister was elected president. The post had Mohammad Javad Zarif who made a remained vacant for 29 months due Iran says it has finished a draft of the long-waited-for high-profile visit to Beirut starting on to rivalry between powerbrokers in Citizenship Rights Charter after it underwent a thorough Monday held talks with the newly-elected Lebanon. revision, now awaiting for an approval by the Majlis (Iran’s Lebanese President Michel Aoun as well Immediately after his arrival in Beirut, parliament), government, or cabinet. as the prime minister, parliament Speaker, Foreign Minister Zarif held talks with “An initial draft of the Citizenship Rights Charter was and Hezbollah chief. President Aoun. 2 drawn up just months after President Rouhani took office and made available to the public in November 2013,” Elham Aminzadeh, the presidential advisor on citizenship rights, told the Tehran Times on Monday. Aminzadeh said it took until now to come up with the first and second versions of the charter after having listened to public and expert opinions of a pool of resources.
    [Show full text]
  • Future Bank Slapped with More Fines
    FRIDAY, AUGUST 28, 2020 FRIDAY, AUGUST 28, 2020 03 02 Green light for inbound Future bank slapped with more fines New fines lift total penalties in the multi-billion dollar sanction evading scheme to $47 million passengers from India Future bank offciais get• new five-year Indian embassy tweets receiving clearance from Bahrain’s jail terms each $7bn KNOW WHAT government for more inbound passengers Banks involved get Reports say the bank • allegedly concealed at least new $1 million penality $7 billion of transactions The future bank registered to Those on the between 2004 and 2015 provide commercial banking • TDT | Manama services including deposits, approved list will loans and credit cards had over receive email or call 100 employees at the time of its otal fines amassed by establishment. parties involved in the Investigators found that the • Names of shortlisted Tmulti-billion dollar Fu- Future Bank received requests The bank was founded in 2004 passengers have been ture-bank’s sanction-evading for suspicious financial trans- as a venture between Iran’s Bank shared with Air India money laundering scheme has fers through the “SWIFT” sys- Saderat and Bank Melli as well as His Majesty the King’s Advisor for Diplomatic Affairs Shaikh Khalid bin Ahmed Al Khalifa with the newly appointed touched $47 million, with a tem using a practice known as Bahrain’s Ahli United Bank. Indian Ambassador Piyush Srivastava. Shaikh Khalid praised the historical relations between Bahrain and India, court here slapping $1 million wire-stripping to conceal pay- stressing the Kingdom’s interest in strengthening cooperation for the common interests of both sides, wishing the TDT | Manama Valiollah Seif, who was the fines on three officials and the ments to countries under inter- governor of the ambassador success in his duties.
    [Show full text]
  • Banking Industry Iran Current Status, Opportunities and Threats
    Banking Industry Iran current status, opportunities and threats September 2016 All statements of fact, opinion, or analysis expressed in ILIA white papers are those of the respective analysts. They do not necessarily reflect formal positions or views of ILIA. The information used and statements of fact made are not guarantees, warranties or representations as to their completeness or accuracy. ILIA assumes no liability for any short-term or long-term decision made by any reader based on analysis included in our white papers. Copyright restrictions (including those of third parties) are to be observed. Further Information: www.ilia-corporation.com Table of Content Iran Banking Industry 8 There are 30 banks and 5 financial/credit institutions active in Iran, where banks are the main source of funding for development plans and companies. The Iranian banking industry makes up for 2.5% of GDP and has the second highest penetration rate in the MENA region. Iran is the only Muslim country besides Sudan where the entire financial industry is obliged to be consistent with the principles of sharia law, accounting for more than 40% of the world’s total Islamic banking assets. Iran Banking and Globalization 17 In 2001, 57 branches of private and governmental Iranian banks were active in foreign countries. The number fell to 49 in 2005, and following sanctions all overseas branches were closed. Post the implementation of the JCPOA, more than 50 branches of Iranian commercial banks are expected to restart their activities in foreign countries. Based on the Iran Foreign Investment Promotion Act, foreign banks are allowed to hold a 40% share of Iranian banks and according to the Iranian Central Bank, the necessary initial capital for foreign investors to establish a bank in Iran is at 5 million EUR.
    [Show full text]
  • RISKS of DOING BUSINESS with IRAN Executive Summary June 2018
    Background Resource Guide RISKS OF DOING BUSINESS WITH IRAN Executive Summary June 2018 “[Iran’s] objective is to ensure that no legitimate company or government knows that they are being used to achieve Iran’s illicit aims. ... To those in the private sector, I urge you to also take additional steps to ensure Iran and its proxies are not exploiting your companies to support their nefarious activities. You may think your clients and counter parties are legitimate, but they may be in fact part of the Iranian regime’s deceptive schemes to fund terrorism and human rights abuses.” – Under Secretary of the Treasury for Terrorism and Financial Intelligence Sigal Mandelker, June 5, 20181 Conducting business with the Islamic Republic of Iran continues to entail profound risk, especially following the reinstatement of all U.S. sanctions suspended in accordance with the 2015 nuclear deal formally known as the Joint Comprehensive Plan of Action (JCPOA). After the U.S. announced its withdrawal from the JCPOA and its reinstatement of sanctions, major multinational corporations such as Total, General Electric, Maersk-Moller, and Siemens have announced they will be winding down their business in Iran. Even before the reinstatement of sanctions, the risks of doing business in Iran were substantial, because of pervasive corruption, legal risk, systemic human rights violations, and persistent support for foreign terrorist organizations. In May, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated the governor of the Central Bank of Iran (CBI) for covertly funneling millions of dollars to Hezbollah on behalf of the Islamic Revolutionary Guard Corps’ Quds Force.
    [Show full text]
  • Iran Sanctions
    Iran Sanctions Kenneth Katzman Specialist in Middle Eastern Affairs Updated May 21, 2019 Congressional Research Service 7-.... www.crs.gov RS20871 SUMMARY RS20871 Iran Sanctions May 21, 2019 Successive Administrations have used sanctions extensively to try to change Iran’s behavior. Sanctions have had a substantial effect on Iran’s economy but little, if any, Kenneth Katzman observable effect on Iran’s conventional defense programs or regional malign activities. Specialist in Middle During 2012-2015, when the global community was relatively united in pressuring Iran, Eastern Affairs Iran’s economy shrank as its crude oil exports fell by more than 50%, and Iran had [email protected] limited ability to utilize its $120 billion in assets held abroad. For a copy of the full report, please call 7-.... or visit The 2015 multilateral nuclear accord (Joint Comprehensive Plan of Action, JCPOA) www.crs.gov. provided Iran broad relief through the waiving of relevant sanctions, revocation of relevant executive orders (E.O.s), and the lifting of U.N. and EU sanctions. Remaining in place were a general ban on U.S. trade with Iran and U.S. sanctions on Iran’s support for regional governments and armed factions, its human rights abuses, its efforts to acquire missile and advanced conventional weapons capabilities, and the Islamic Revolutionary Guard Corps (IRGC). Under U.N. Security Council Resolution 2231, which enshrined the JCPOA, nonbinding U.N. restrictions on Iran’s development of nuclear-capable ballistic missiles and a binding ban on its importation or exportation of arms remain in place for several years.
    [Show full text]
  • Iran Report 2 Monetary Predicament Final Review-2
    A Monetary Crisis Understanding the Role the Money Supply has played in Iran’s Economic Downturn ECONOMIC RISK SERIES NO.3 | MAY 2019 1 1 ECONOMIC RISK SERIES NO.3 | MAY 2019 EXECUTIVE SUMMARY • Iran’s weakening currency and inflation are just symptoms of a much greater structural problem: the abnormally high growth of the money supply, which has tripled over the last few years. • The rial’s freefall has given rise to speculation, with investors and citizens alike rushing to buy up safe assets like gold, real estate, cars, stocks and foreign currency. • Iran’s nominal economy is growing at a much faster rate than its real economy. This has harmed future investment, as money is being left in dormant long- term deposits, where growth is guaranteed due to high interest rates. • Iran’s banking system is a ticking time bomb, with a high level of non-performing loans. The government has been bailing out cash-strapped banks in an effort to avert a crisis. However, this short-term solution can only postpone the inevitable. • Iran’s nominal economy cannot continue on this path. An overhaul of the banking system, including the rollout of new currency, more independence for the central bank of Iran (CBI) and greater adherence to international financial norms, is the only solution. Yet, US policies have directly endangered such reforms. Who are we? Castlereagh Associates is a research and analysis company, providing clients with key insights to support their decision-making and enable them to build more competitive and resilient businesses on national, regional and global levels.
    [Show full text]
  • Risks of Doing Business with Iran: a Resource Guide for Germany Executive Summary November 2018
    Background Resource Guide Risks of Doing Business with Iran: A Resource Guide for Germany Executive Summary November 2018 The Islamic Republic of Iran promotes itself as a reliable business partner, hosts trade fairs and business forums in European capitals, and goes to great lengths to entice European businesses to invest in its economy. The governor of the Central Bank of Iran (CBI) traverses the continent, promoting the benefits of financial ties to the regime. In May 2018, the United States designated Valiollah Seif, then-governor of Iran’s Central Bank, for covertly funneling millions of dollars to Hezbollah on behalf of the Islamic Revolutionary Guard’s (IRGC) Quds Force.1 The very individuals who seek to persuade investors also engage in illicit finance, an illustration of how complicity goes to the very top. Businesses, however, must pull back the veil of Iran’s deceptive practices, front companies, and fraudulent activities to uncover the multitude of risks inherent in having Iran as a financial partner. The Financial Action Task Force (FATF), an intergovernmental body that sets standards for anti-money laundering and counter-terror finance legislation, is one measure of Iran’s corruption and illicit finance. In 2008, FATF placed Iran on its “blacklist” of high-risk and non-cooperative jurisdictions, posing a barrier to its reintegration with the global financial system. In short, the organization counseled banks to apply “enhanced due diligence measures” to business relationships and transactions with Iranian counterparties.2 FATF sought to work with the Iranian government on a reform plan, encouraging it to take concrete steps to bring its anti-money laundering and terror financing regulations to international standards.
    [Show full text]
  • Risks of Doing Business with Iran Executive Summary May 2017
    Background Resource Guide Risks of Doing Business with Iran Executive Summary May 2017 Conducting business in the Islamic Republic of Iran continues to entail profound risk. Nearly one year after the Financial Action Task Force (FATF) temporarily suspended mandatory countermeasures on Iran for its illicit conduct, Tehran has not fundamentally altered the behavior that led the standard-setting body to penalize it in the first place. Over the past 12 months, Iran has not addressed the rampant money-laundering issues that pervade all sectors of its economy, a problem compounded by systemic financial corruption throughout Iran’s government bodies. The regime harbors a notoriously unscrupulous legal system that contains significant carve-outs for governmental discretion (under the dubious pretext of “national security”), the business empires of Iran’s Islamic Revolutionary Guard Corps (IRGC), and the Supreme Leader. Iran’s poor rankings on a wide range of corruption and compliance indexes underscore this point. An overall lack of Iranian transparency presents compliance risks to companies and financial institutions interested in doing business in Iran. Companies transacting in Iran also risk contravening existing U.S. sanctions regimes designed to prevent Iran from funding terrorist organizations that threaten American interests and American citizens. Iran is designated pursuant to section 311 of the USA PATRIOT Act as a jurisdiction of money-laundering concern. Former U.S. Acting Under Secretary for Terrorism and Financial Intelligence Adam Szubin stated that if foreign firms run afoul of U.S. sanctions regulations, they would be “risking the most draconian sanctions in our toolkit, and that governs not just U.S.
    [Show full text]
  • Eye on Iran's Presidential Election
    Eye On Iran’s Presidential Election June 2021 11 Contents Overview ........................................................................................................ Error! Bookmark not defined. Ebrahim Raisi .................................................................................................. Error! Bookmark not defined. 2021 Presidential Candidacy ...................................................................... Error! Bookmark not defined. Raisi’s Early Years ....................................................................................... Error! Bookmark not defined. National Platform ....................................................................................... Error! Bookmark not defined. The Politicization of a Religious Platform .................................................. Error! Bookmark not defined. Chief Justice................................................................................................ Error! Bookmark not defined. Conclusion .................................................................................................. Error! Bookmark not defined. Abdolnaser Hemmati ..................................................................................... Error! Bookmark not defined. Saeed Jalili ...................................................................................................... Error! Bookmark not defined. Mohsen Rezaei ............................................................................................... Error! Bookmark not defined.
    [Show full text]