Kuwaiti deposits in Iranian banks to be revealed soon – Value of Iran currency declines

January 6, 2018

With the recent escalation of situation in Iran, it seems the actual value of deposits by Kuwaitis in the Iranian banks offering high interest rates will be revealed in the next few days, along with their shares in the companies, reports Al-Rai daily.

Fears about the deposits have intensified with the decline in value of the Iranian currency (toman) and the odds that some Iranian banks might be spiraling toward bankruptcy.

An expert in money laundering affairs disclosed that deposits of Kuwaitis in the Iranian banks are worth hundreds of millions of dollars. He observed a noticeable growth in the rate of deposits over the years due to high interest rates offered by Iranian banks (22 percent) compared to the rates of Kuwaiti banks, which are considered too little.

He anticipated a potential catastrophe with the current turn of event. He noted the transfer of funds to Iran is done online by some exchange companies that are supposed to be monitored by the Ministry of Commerce and Industry. He also said the activities of the exchange companies are supposed to be confined to ‘buying and selling’ of currencies on the Gulf shores.

He pointed to various means of sending money to Iran, starting with the exchange companies and ending at the Iranian banks via branches in the Gulf countries. He stressed that funds transferred illegally are neither guaranteed safe delivery in Kuwait or Iran despite contracts signed between the clients and the banks or their agents in the Gulf countries, because such contracts are based on illegal deals and the signatories could face accusations of money laundering and funding of terrorism. He reiterated that foreigners, including Kuwaitis, will not be considered even if the Iranian government decides to compensate its citizens for their losses.