Iran's Oil Sale Proceeds Deposits Overseen by CBI, Minister Says

Oil minister said the mechanism for depositing proceeds from oil sales is overseen, monitored and controlled by the Central Bank of Iran, stressing that the Oil Ministry has no role in banking operations related to those funds.

Speaking Saturday, Oil Minister Mohsen Paknejad said oil sales can be viewed in two stages: marketing and negotiating the sale, and the subsequent return of the proceeds.

Under existing rules, he said, revenues from oil sales must be deposited into accounts approved by the central bank. Those accounts are designated by the central bank and introduced to the Oil Ministry so that payments can be made when they come due.

“The deposit mechanism is under the supervision, monitoring and control of the central bank because this is fundamentally a banking matter,” Paknejad said. “Our responsibility is marketing, sales and specialized commercial activities.”

He added that verifying whether funds have been deposited, the amounts, the payment structure and the timing of transfers is handled by the central bank within the banking system it oversees. If necessary, he said, the bank can provide feedback to the Oil Ministry, which may then reassess its dealings with certain traders that purchase Iranian oil.

Paknejad said the key issue is oversight and the separation of responsibilities. Monitoring whether funds have been deposited, how much has been transferred and whether payments were made on schedule to accounts held at central bank–approved agent banks falls to the central bank, he said.

Oil Ministry officials, he added, do not have access to banking systems and cannot review payment messages, including when transfers are issued or credited. “The accounts are under the control of the central bank, and it is therefore the bank that can enter and examine these matters,” he said. - Shana