The secretary of Iran's High Council of Free Trade Zones said the Central Bank of Iran has okayed opening of an offshore bank in Kish Island Free Trade Zone.
"We have got permission from the central bank for launching Iran's first offshore bank on the island. The CBI has asked us to submit the list of shareholders of the bank," Saeid Mohammad was quoted as saying in an interview with ILNA.
A consortium of shareholders has been formed for the bank, but names will not be published due to the US economic sanctions and other restrictions, Mohammad said.
"The proposal will be submitted to the CBI in two weeks. The bank would be launched with an initial capital of $200 million."
Back in 2016, the Money and Credit Council – the highest decision-making body of the financial markets in Iran – raised the minimum capital requirement for banks in free trade zones from €25 million to €150 million, to apparently help ensure a capital cushion for lenders against possible risks, enhance their operations and promote growth.
The council has restricted permits for undertaking international banking operations only to banks and their subsidiaries.
Apparently, the CBI has agreed to revise regulations for FTZ banks. According to Mohammad, the CBI is currently working on allowing Iranian and foreign investors to establish banks in FTZs by private sector individuals and entities to
As per law, foreigners can own up to 40% of bank shares on the mainland while in the free zones they can hold 100% equity.
The government is offering tax exemptions and easier visa regulations in the special economic and trade zones to attract foreign companies.
Offshore lenders are expected to meet FTZ goals in attracting much-needed foreign investment.
