Travelers Should Declare Cash Over $10,000

The Central Bank of Iran has issued a directive requiring travelers and truckers in  transit entering the country to declare currency valued over $10,000 to the Ministry of Economy’s Financial Intelligence Unit (FIU), in line with international anti-money laundering statutes.

Bringing in or taking out monetary instruments less than $10,000 (or its equivalent in other currencies) is not subject to reporting requirements.

The CBI said in its statement published on its website that the new measures are meant to "remove the loopholes in existing laws."

Travelers carrying large amounts of cash need to refer to the Customs Administration. They would be asked to go to a Bank Melli Iran’s border branch (or at airports,) where they hand in the excess amounts they possess and receive a receipt. Following FUI’s thumps-up, travelers can either receive their hard cash back or sell it to the BMI at the open market rates.

BMI offices are operating at 14 border checkpoints. “Large amounts will not be transferred through other border checkpoints,” the statement reads.

FIU will send cases of illegal cash transfers to the courts. The money would be kept with the BMI until the court issues a verdict.

The CBI statement also notes that moving large amounts of foreign exchange out of the country requires a permit from the Customs Administration. Applicants should fill out a form at irica.gov.ir specifying the exact amounts they want to take out as well as the currency unit.

The new regulation comes into effect on November 21.

An Economy Ministry report says the Iran Financial Intelligence Unit affiliated to the Iran High Council on Anti-Money Laundering, reviewed a total of 2,927 cases of suspicious money transactions during the last fiscal year that ended in March, 318 of which were sent to the courts.

The High Council on Anti-Money Laundering was established in 2008. It is headed by the economy minister. The minister of industry, mining and trade, the minister of intelligence, interior minister and governor of Central Bank of Iran also sit on the council.

Tehran took an important step in upgrading its banking and financial laws closer to international norms with the Guardian Council ratifying a long-pending bill to curb money-laundering and financing terror early in March.

Due to the decade plus sanctions against Iran's financial and banking sector and its subsequent isolation from global business, the country has lagged behind in implementing advanced anti money-laundering measures adopted and advocated by international financial institutions. However, the Rouhani administration is keen on upgrading anti-money laundering laws and counter-terrorism financing following the easing of sanctions in January.

In June, FATF, a global group of government anti-money-laundering agencies, decided to keep Iran on its blacklist of high-risk countries. FATF, however,  welcomed Iranian pledges to improve its regulations and called for a one-year suspension of some restrictions.