This articles sets out a high level review of the legislation governing the existing banking system in Iran and options available to international institutions looking to undertake financial activities in or with Iran.

The legal system in Iran is a civil law based system which incorporates, where applicable, the principles of Islamic laws and jurisprudence. 

The Regulator

At present, there are no fully licensed foreign banks in Iran. Many banks in Iran are Iranian government owned, while the rest are private Iranian banks. The Monetary and Banking Law of Iran issued on 9 July 1972 provides that the Central Bank of Iran is responsible for the formulation and implementation of monetary and credit policies with due regard to the general economic policy of the country. Among other things, the Central Bank is responsible for the supervision of banks and credit institutions in accordance with the Monetary and Banking Law.