Iran's central bank stresses its complete adherence to international law, saying allegations by US financial authorities are unfair.

In a letter to the Financial Times published April 11, the Director of the Public Relations Department of the Central Bank of Iran (CBI), Ali Jahani wrote, “Contrary to unfair, undocumented and unrealistic statements by the US financial authorities, the Central Bank of Iran has always adhered to the best international practices, fully respecting international laws. The international financial community has always appreciated the professionalism of the management and staff of the CBI.”

The letter by the Iranian official was written in response to the Financial Times March 22 article titled "Steer clear of Iran central bank, says US". In that article, the business daily stated that Washington "called on international financial institutions to steer clear of doing business with Iran's central bank, in the US's most wide-ranging attempt yet to isolate Tehran financially".

"There are 10 state-owned and seven private banks in Iran and all Iranian commercial banks have long 'steered clear of the US dollar'. They now open only non-US dollar documentary letters of credit and they have completely stopped using the so-called 'U-turn mechanism', a known innovative method previously used for dollar settlements of which the US financial authorities were not unaware and which would operate only with their implicit approval," the Iranian official elaborated.

He also reiterated that CBI, in full compliance with international rules and regulations, continues to supervise the timely fulfillment of "commitments" by the Iranian banking industry worldwide.

"Although it (Iran's central bank) has reservations of its own about recent restrictions by the UN Security Council against two Iranian banks, the CBI has been taking the utmost care to see these implemented to the letter. Even when Bank Sepah came under UNSC restrictions, the CBI kept a high profile on the case so as to ensure that the remaining commitments of Bank Sepah were fulfilled as licensed by the relevant UN authorities,” Jahani explained.

Jahani cited the presence of CBI officials at a recent Financial Action Task Force meeting applying for FATF membership and the passing of recent anti-money laundering legislation as well as the maintenance of a favorable membership status with the International Monetary Fund.

These, he said, are proof that this top bank spares no effort to ensure that the Iranian banking system "is functioning soundly and accurately and [depicts] a true and transparent picture of the system".