Central Bank of Iran slams, to contest Luxembourg assets seizure

EghtesadOnline: The Central Bank of Iran (CBI) has strongly criticized a recent decision by a court in Luxembourg to seize $1.6 billion of the Islamic Republic's assets, saying the verdict did not amount to the enforcement of a related ruling by a US court.

News ID: ۷۴۰۵۷۹

27 March 2017

In a statement on Sunday, the CBI announced that it would use all means at its disposal to protest and appeal the decision by the Luxembourg court, adding that legal efforts would continue until the rights of the Iranian nation are restored.

“The recent decision by the court in Luxembourg does not mean the recognition and enforcement of the US court verdict and the aforementioned seizure [of assets] only is a preliminary measure, which can be countered through various means,” it said.

“There are numerous means available under Luxembourg laws to counter it, such as protesting and appealing the verdict at higher courts, and the Central Bank [of Iran], with the cooperation of the Iranian Presidency's Center for International Legal Affairs, will make the utmost use of the above means,” the statement added.

“Measures by the United States of America in line with issuing so-called terrorism rulings against the Iranian government are in various respects violations of international law and conventions.”

According to the statement, the procedure adopted by the US against Iran is in contravention of the immunity of governments under international law and a violation of the Treaty of Amity, Economic Relations and Consular Rights signed between Iran and the US in 1955.

Furthermore, the CBI said, the execution in other countries of the ruling in absentia lacks any justification and basis in international law, PressTV reported.

“The Islamic Republic has cataloged in detail the reasons for the illegality of this measure by the government of the United States of America in a petition registered at the International Court of Justice,” added the statement.

It added that several years ago, in response to the intensification of US sanctions against Iran, the CBI launched a campaign to “curtail the share of the US dollar in its income basket and this measure was implemented gradually but continuously. This policy is also followed closely today.”

A Luxembourg court on Wednesday denied a request by Tehran to retrieve $1.6 billion of Iranian assets claimed by the US as compensation for the victims of the September 11, 2001 attacks.

The New York Times released a report on March 6 about a confidential ruling by a Luxembourg court to freeze $1.6 of CBI assets in a financial institution in the European country.

According to informed sources, the Luxembourg court ordered the freezing of the CBI assets after a group of terror attack victims, who had won a default judgment against Iran in the US, filed a lawsuit at the European court to try to enforce it, the report said.

In 2011, the group had persuaded a federal judge in New York, George B. Daniels, to find that Iran had provided assistance to al-Qaeda in the 9/11 attacks, an allegation vehemently dismissed by the Islamic Republic. In 2012, the judge ordered Iran to pay the victims two billion dollars in compensatory damages and five billion dollars in punitive damages.

That judgment stagnated for years, as there was no obvious financial source to collect it. However, after the nuclear sanctions against Iran were lifted, following a deal on Iran’s nuclear program, which was signed last year, the group referred the case to the Luxembourg court as it came to light that the Clearstream system in Luxembourg, which facilitates international exchanges of securities, was holding $1.6 billion in CBI assets.

In a similar case in April, the US Supreme Court issued an order authorizing the transfer of around two billion dollars of frozen Iranian assets to the families of the victims of a 1983 bombing in Beirut, which targeted a US Marine Corps barracks in the Lebanese capital, Beirut, and other attacks blamed on Iran. The assets belong to the CBI, which have been blocked under US sanctions.

Iran has denied any role in the attacks and strongly criticized the move by the US.