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Still a Work in Progress, Europe’s Trade Channel with Iran Shunned by Banks

By Gabriel Vedrenne

A barter mechanism developed by France, Germany and the United Kingdom to stay onside of U.S. sanctions against Iran has generated significant interest from firms both inside and outside of Europe, but has yet to do the same with banks, sources told ACAMS moneylaundering.com. On Jan. 31, the European Union's three largest nations officially registered the "Instrument in Support of Trade Exchanges," a special purpose vehicle, or SPV, designed to encourage European banks to intermediate legitimate trade with Iran by eliminating the direct involvement of Iranian banks and businesses from the transactions. The SPV, also called "Instex," will act as...

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