New Rules on Bank Debtors’ Travel Ban

EghtesadOnline: The governor of the Central Bank of Iran has sent a letter to CEOs of all state-owned and private banks, notifying them of new regulations concerning foreign travel ban on bank debtors.

News ID: ۷۷۳۶۰۴

31 January 2017

According to Valiollah Seif’s notification, natural persons with debts exceeding 3 billion rials ($78,000) and legal entities who have racked up debts higher than 5 billion rials ($130,000) and also do not possess a valid guarantee, namely immovable property like real-estate or movable property like deposits or other acceptable collaterals, will be placed on the no-fly list if demanded by the banks’ CEOs, reports Banker.ir.

According to Financial Tribune, other regulations mentioned in the letter are as follows:

* A request for foreign travel ban is only executable at the behest of the corresponding bank’s CEO.

* The person targeted by the ban must be written to and informed.

* In case of legal entities, it is only possible to put the current manager of companies on the no-fly list.

* It is not possible to put a former company manager on the no-fly list, even if they are the ones who signed the documents back at the time of receiving the loans. * It is not possible to place restrictions on guarantors and foreign travel ban is only applicable to debtors themselves.

* Repeal of the ban is possible after settling the debts, providing adequate guarantee or resolving the case.

* Before requesting a ban on a public-sector executive, they must be directly asked to settle their company’s debts.  * If an individual is targeted due to the debts of multiple companies, it is possible to lift the ban only when all the debts are settled.