Lexology | Ali Najm: Following the removal of sanctions imposed to Iran as well as the resulting reopening of Iran to the international banking system after the, Saman Bank - one of Iran’s private banks - announced the opening of its office in Italy, Europe during May 2017.

The target of such a development is to provide a simpler method for direct transactions with Iranian Banks.

Additionally, according to TCCIMA, the Italian Banca Popolare di Sondrio has agreed to perform money transfer services with Iranian Banks at a 0.15% fee. These transactions would be in line with FATF rules and regulations. It is worth noting at this point that Iran hopes to be removed from the FATF blacklist in July.

Of note is also the fact that Banca Popolare di Sondrio Bank services are available both to Iranian businesspeople as well as to Iranian students living in Italy. The bank has also stated that it will provide funding and investment consulting services to European companies and individuals interested to invest in the Iranian market.

The desire and effort of European Banks for reconnecting banking relationships with Iranian banks, coupled with Iran’s effort towards solving existing issues, provides a promising perspective for businesses interested in the Iranian market.

The recovery of Iran is visible in other sectors as well. Tehran announced that, according to a report released by EU’s Eurostat, the total value of trade exchange between Iran and the European Union during the first quarter of 2017 has increased by 265 percent.

The total trade between Iran and the EU in the first three months of 2017 reached a level of €5.3 billion which shows more than a 250% increase in comparison to the same period last year when the trade amounted to €2 billion.