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1/31, 8:01 AM (Source: TeleTrader)
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EU partners prepare Iran payments link – reports

A channel for transactions for Iran called Instex or Instrument in Support of Trade Exchanges is being prepared by Germany, France and the United Kingdom, German media reported on Thursday from knowledgeable sources. The European Union has already acknowledged the payments link is near launch.

The so-called special purpose vehicle is being devised to circumvent sanctions that the United States imposed on the Middle Eastern nation by direct settlement between companies and not through banks. Insiders revealed the entity was formally established with a German chief executive and that it is based in Paris. The supervisory board is apparently run by a British national and all three countries are supposed to have a foreign ministry representative in the company.

The sources added other EU member countries are free to join and that the system would be set up within weeks, as a mechanism is being rolled out for the prevention of money laundering and financing terrorism.

Breaking the News / IT