Banks Told to Block Transactions of Flawed IDs

EghtesadOnline: The Central Bank of Iran announced that as of April 26, the PAYA network, an electronic clearing house, has stopped processing transactions lacking full ID of bank customers.

News ID: ۷۸۶۴۰۴

28 April 2021

The measure is in line with CBI plans to enhance transparency in the banking industry and implement stringent anti-money laundering regulations, a CBI press release said. This will particularly impact bank clients who have not registered their full identity with banks.

Similar restrictions were announced earlier in January, regarding payments via SATNA network, internationally known as Real Time Gross Settlement. According to the regulator, full ID requirements will soon be demanded by other CBI platforms, namely the Chekavak, Shaparak and Shetab networks.

The interbank information transfer network, SHETAB launched in 2002, is a key part of the domestic electronic transaction network. Checkavak, an automated clearing house for checks, PAYA, and SATNA are online systems the CBI launched in recent years.

Currently, 98% of bank customers have registered their identity  with banks and credit institutions, the CBI said. The CBI is working on other platforms to help boost its regulatory oversight in implementing anti-money laundering measures, such as caps on daily bank transactions.

NAHAB, a key platform developed by the CBI, generates a special code for Iranians, legal entities and foreigners residing in the country. The code is for easing access to customers IDs.

Over the past two years the CBI has announced rules to improve control over banks and promote transparency of their financial performance. The measures, among other things, help ensure AML measures, curb tax evasion and curtail speculation in financial markets, namely gold and foreign exchange.