Published: Tue, July 10, 2018

Iran looks to withdraw $350 million from German bank

Iran looks to withdraw $350 million from German bank

German authorities are considering a request by Iran to withdraw 300 million euros from bank accounts held in Germany and transfer the cash to Iran, Bild newspaper reported Monday, citing unnamed government officials.

BaFin was now reviewing the request, which had been briefed to senior officials in the chancellery, foreign ministry and finance ministry, the newspaper added in its report as quoted by Reuters.

After the Trump administration in May pulled out of a landmark nuclear deal between Iran and world powers, Washington vowed to introduce severe sanctions against Iran.

American and Israeli intelligence officials are particularly concerned over fears the money would be used to finance terrorism.

The money sought by Iran is said to be in order to give to nationals travelling overseas, and who will not be able to access credit cards due to the new financial restrictions.


Associated Press reported spokeswoman Jeanette Schwamberger as saying "should the checks turn up anything suspicious then the result would be the transaction can not be completed".

Unnamed officials in Berlin were quoted by Bild newspaper as saying that Tehran was seeking withdraw the funds from the Europaeisch-Iranische Handelsbank AG (eihbank) in order to satisfy part of its foreign currency needs when fresh USA sanctions against its financial sector take effect. The state-owned bank is now is now under U.S. sanctions.

Iran and the other parties to the agreement - the UK, France, Germany, China, and Russian Federation - have all said they will try to maintain the pact, however, USA sanctions will likely influence trade and economic ties between Iran and other countries.

Foreign ministers from the five remaining signatory countries to the nuclear deal - Britain, France, Germany, China and Russian Federation - offered a package of economic measures to Iran on Friday but Tehran said they did not go far enough.

While the United States is yet to comment on Bild's report, on Monday Mr Trump said Germany needed to devote more of it's GDP to North Atlantic Treaty Organisation.

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