Iran has been using various financial mechanisms to enable it to carry out international trade in foreign currency

Apr 06 2022

For years, Iran has been using various financial mechanisms to enable it to carry out international trade in foreign currency and bypass various economic sanctions (MPC, the Obama-era sanctions regime, FATF black list, PMLC). In this way Iran has managed to avoid a foreign currency liquidity crisis time after time.

Although many people in the financial world knew that Iran was using various illicit methods to carry out international trade and financial transactions, only now the unprecedented scope and full details are published.

The Wall Street Journal published on March 18th 2022 an exposé entitled Clandestine Finance System Helped Iran Withstand Sanctions Crush, that revealed a sophisticated and well-planned mechanism of banking cover networks that has enabled Iran to receive and pay tens of billions of dollars worth of foreign currency annually.

An independent investigation carried out by Double Cheque reveals that the apparatus is managed under clear instructions from the Iranian political echelon, particularly the economics and technology division at the Supreme National Security Council (SNSC), headed by Seyed Mohammad Mir-Mohammadi. As such, this method is used by Iran on a national level, and by the various Iranian exporters working on its behalf.

According to the Wall Street Journal, the mechanism was established to enable Iranian importers and exporters to receive and pay in foreign currency outside Iran, while concealing the real Iranian beneficiaries. Today we reveal that the mechanism is used by most of Iran’s commercial banks: Shahr Bank, Parsian Bank, Tejarat, Eghtesad-Novin, Mellat, Gardeshgari, and others, together with several Iranian government exporters, chiefly the National Oil Company (NIOC) and the Persian Gulf Petrochemicals Company (PGPICC).

Iran has carefully selected the countries in which it operates on the basis of the loopholes it can exploit in their banking controls. The countries include UAE, China, Turkey, Hong Kong, Singapore, and others. Iran knowingly endangers the reputation and financial activity of the international banks operating in these countries.

Further to the Wall Street Journal report, we are publishing the findings of our own investigation in order to expose and warn our community of followers about ostensible money laundering being carried out at international banks in the UAE, China, Turkey, Hong Kong, and Singapore.

In the next few days, Double Cheque will be publishing details of the cover accounts, names of the cover companies, and additional information on the mechanism in each of the countries mentioned above that enables the Iranian cover array to dupe the international financial system and taint it with money laundering activity. Keep posted…

Turkey

Turkey’s border with Iran has turned it into a significant trade partner with Iran. In recent years, given the U.S. sanctions regime, trade between the two countries decreased from about $10 billion in 2017 to about $3.4 billion in 2020.

According to many reports, Turkey is being monitored by various international bodies due to the many deficiencies and weak spots in its financial environment and in October 2021, it was added to FATF’s grey list.

Given this, Iran has exploited the Turkish banking system and operated a banking cover mechanism in Turkey that has enabled international trade and financial transactions despite the sanctions regime, as revealed only recently by the Wall Street Journal. According to information obtained by Double Cheque, these are the banks in Turkey at which Iran has managed to open accounts for its shell companies:

Vakif Katilim Bankasi

SWIFT – VAKFTRIS

1. Account name: MATTERHORN PLASTİK HAMMADDE DIŞ TİC.LTD.ŞTİ

Account number: TR66 0021 0000 0002 8738 1001 01

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: MATTERHORN PLASTİK HAMMADDE DIŞ TİC.LTD.ŞTİ

Account number: TR39 0021 0000 0002 8738 1001 02

Currency: EURO

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: MDS BİLİŞİM YAZILIM DANIŞMANLIK TİC.LTD.ŞTİ

Account number: TR540021000000029211700101

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

4. Account name: MDS BİLİŞİM YAZILIM DANIŞMANLIK TİC.LTD.ŞTİ

Account number: TR270021000000029211700102

Currency: EURO

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

QNB Finansbank – Turkey

SWIFT – FNNBTRISOPS

1. Account name: MEDAL MEDİKAL DIŞ TİC.LTD.ŞTİ

Account number: TR17 0011 1000 0000 0088 2246 12

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: MEDAL MEDİKAL DIŞ TİC.LTD.ŞTİ

Account number: TR82 0011 1000 0000 0088 2244 12

Currency: EURO

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: GLOBALDO DANISMANLIK HIZMETLERI DIS TICARET LIMITED SIRKETI

Account number: TR520011100000000092850688

Currency: EURO

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Turkiye Finans Katilim Bankasi

SWIFT – AFKBTRIS

1. Account name: MEDAL MEDİKAL DIŞ TİC.LTD.ŞTİ

Account number: TR14 0020 6002 1003 8041 1501 02

Currency: EURO

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: MEDAL MEDİKAL DIŞ TİC.LTD.ŞTİ

Account number: TR41 0020 6002 1003 8041 1501 01

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

UNITED ARAB EMIRATES

UAE is Iran’s main trade partner due in part to their geographic proximity. According to estimates, their trade is worth about $14 billion a year.

UAE is considered a significant financial hub in the region. There is a great deal of commercial activity in the country with Iran and other countries in the region.

According to media reports, in early March 2022, the international organization Financial Action Task Force (FATF) announced that UAE would be included on the organization’s grey list, which features jurisdictions subject to increased monitoring due to the increased risk of money laundering. FATF has instructed other countries to carry out enhanced due diligence, and in some cases, additional counter measures when conducting business and financial activity with countries on FATF’s grey and black lists.

The Iranian banking cover mechanism recently exposed by the Wall Street Journal has managed to exploit these weak spots and deficiencies, and has enabled international trade by concealing the source of the money and its Iranian beneficiaries. According to information obtained by Double Cheque, these are the banks in UAE where Iran has managed to open accounts covertly under cover of shell companies:

Commercial Bank of Dubai

SWIFT – CBDUAEAD

1. Account name: QUNTUM BUILDING MATERIALS TRADING LLC

Account number: 1002370334

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: ALSHIVAN LINE TRADING FZE

Account number: 1002427688

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: TRUTH CORP GENERAL TRADING LLC

Account number: AE570230000001002577490

Currency: AED

Controlled by the Iranian bank: Eghtesad Novin Bank

4. Account name: BOTAS TRADING FZE

Account number: 1002386025

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

5. Account name: Karsan Trading FZE

Account number: AE070230000001002365145

Currency: EURO

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Al Masraf Bank

SWIFT – ABINAEAA

1. Account name: MOTOTIVE GENERAL TRADING LLC

Account number: 994000011125

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: KHALEEL KOROTH PETROCHEMICALS TRADING LLC

Account number: 994000011701

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Banque Misr – UAE

SWIFT – BCAIAEAA

Account name: MEGA PETROLEUM LLC

Account number: AE200150080309100003396

Currency: AED

Controlled by the Iranian bank: Eghtesad Novin Bank

Dubai Islamic Bank

SWIFT – NISLAEAD

Account name: BAYRAK GOODS WHOLESALERS LLC

Account number: AE940520000111168020015

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Emirates Islamic Bank

SWIFT – MEBLAEAD

1. Account name: ALSHIVAN LINE TRADING FZE

Account number: 3708 4108 0810 1

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: WEST HILLIER FOODSTUFF TRADING LLC

Account number: 3708398121001

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: INDO GULF RAW MATERIALS TRADING FZE

Account number: AE840340003708431293201

Currency: AED

Controlled by the Iranian bank: Eghtesad Novin Bank

4. Account name: GOLDEN ADDRESS GENERAL TRADING LLC

Account number: AE250340003708409590901

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Emirates NBD

SWIFT – EBILAEAD

1. Account name: RICHMOND TRADING FZE

Account number: 1015709566001

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: SCARLETT STEEL TRADING LLC

Account number: 1015684317001

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

RakBank

SWIFT – NRAKAEAK

Account name: NEW ORLEANS TRADING FZE

Account number: 0182834196001

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Mashreq Bank

SWIFT – BOMLAEAD

Account name: MOTOTIVE GENERAL TRADING LLC

Account number: 019100469524

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Melli Dubai Bank

SWIFT – MELIAEAD

Account name: QUNTUM BUILDING MATERIALS TRADING LLC

Account number: AE890100000101013871910

Currency: AED

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Janata Bank Limited – UAE

SWIFT – JANBAEAA

Account name: ROSTOCK TRADING FZE

Account number: AE210313109330211009991

Currency: AED

Controlled by the Iranian bank: Mellat

Arab Bank

SWIFT – ARABAEAD

Account name: KHALEEL KOROTH PETROCHEMICALS LLC

Account number: unknown

Currency: AED

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

CHINA

In recent years, China has become Iran’s main oil client. There are assessments that at certain times in the past, it was Iran’s only crude oil client. In addition to oil, China procures goods from Iran in all its main export sectors: petrochemicals, metals, and more.

In 2019, the value of export from Iran to China increased to $13.4 billion, and Iranian import from China increased to a value of $9.6 billion.

However, as was recently exposed by the Wall Street Journal, Iran has also operated a banking cover mechanism inside China that has enabled it to carry out international trade and financial transactions under the sanctions regime. According to information obtained by Double Cheque, these are the banks in China in which Iran has managed to open accounts for its shell companies:

China Guangfa Bank

SWIFT – GDBKCN22

1. Account name: JIURUI INTERNATIONAL TRADE CO LIMITED

Account number: NRA9550880216948200733

Currency: EUR

Controlled by the Iranian bank: Parsian Bank

2. Account name: JIURUI INTERNATIONAL TRADE CO LIMITED

Account number: NRA9550880216948200643

Currency: USD

Controlled by the Iranian bank: Parsian Bank

Industrial and Commercial Bank of China

SWIFT – ICBKCNBJSHI

1. Account name: SCOFIELD HK LIMITED

Account number: NRA1001015909388001119

Currency: EUR

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: SCOFIELD HK LIMITED

Account number: NRA1001015909148001010

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: MARK LANE MEDICAL AND EQUIPMENT TRADING HK LIMITED

Account number: NRA1001015909388001243

Currency: EUR

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

4. Account name: MARK LANE MEDICAL AND EQUIPMENT TRADING HK LIMITED

Account number: NRA1001015909148001134

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Zhejiang Chouzhou Commercial Bank

SWIFT – CZCBCN2X

1. Account name: Longyao Singapore PTE LTD

Account number: NRA56504142010500000080

Currency: USD

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: Longyao Singapore PTE LTD

Account number: NRA56504382010500000089

Currency: EUR

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: Hongwen Singapore PTE LTD

Account number: NRA56504012010590000138

Currency: CNY

4. Account name: Hongwen Singapore PTE LTD

Account number: NRA56504142010500000072

Currency: USD

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

5. Account name: Hongwen Singapore PTE LTD

Account number: NRA56504382010500000071

Currency: EUR

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

6. Account name: Longyao Singapore PTE LTD

Account number: NRA56504012010590000146

Currency: CNY

Zhejiang Mintai Commercial Bank

SWIFT – ZJMTCNSH

1. Account name: SCOFIELD HK LIMITED

Account number: NRA584019540000020

Currency: EUR

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: SCOFIELD HK LIMITED

Account number: NRA584019540000017

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Zhejiang Tailong Commercial Bank Co. LTD

SWIFT – ZJTLCNBH

1. Account name: SCOFIELD HK LIMITED

Account number: NRA31010140201000017662

Currency: EUR

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: SCOFIELD HK LIMITED

Account number: NRA31010140201000017654

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: MARK LANE MEDICAL AND EQUIPMENT TRADING HK LIMITED

Account number: NRA31010140201000018116

Currency: EUR

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

4. Account name: MARK LANE MEDICAL AND EQUIPMENT TRADING HK LIMITED

Account number: NRA31010140201000018108

Currency: USD

Exchange company: Nabizadeh Exchange

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

Shanghai Pudong Development Bank Nanshi Sub-Branch FTU

SWIFT – SPDBCNSHFTU

1. Account name: Longyao Singapore PTE LTD

Account number: NRA98250001301000007

Currency: CNY

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

2. Account name: Longyao Singapore PTE LTD

Account number: NRA98250014101000008

Currency: USD

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

3. Account name: Longyao Singapore PTE LTD

Account number: NRA98250038401000010

Currency: EUR

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

SINGAPORE

As was recently exposed by the Wall Street Journal, Iran has also operated a banking cover mechanism inside Singapore that has enabled international trade despite the sanctions regime. According to information obtained by Double Cheque, these are the banks in Singapore in which Iran has managed to open accounts covertly under cover of shell companies:

Oversea-Chinese Banking Corporation Limited Singapore

SWIFT – OCBCSGSG

Account name: Hongwen Singapore PTE LTD

Account number: 503230534201

Currency: EUR

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

United Overseas Bank Limited Singapore

SWIFT – UOVBSGSG

Account name: Longyao Singapore PTE LTD

Account number: 3659029977

Currency: EUR

Controlled by the Iranian bank: Shahr Bank (Rahbar Amin)

HONG KONG

As was recently exposed by the Wall Street Journal, Iran has also operated a banking cover mechanism inside Hong Kong that has enabled international trade and financial transactions despite the sanctions regime. According to information obtained by Double Cheque, these are the banks in Hong Kong at which Iran has managed to open accounts for its shell companies: