Clare Daly (Dublin Fingal, Independent)
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212. To ask the Minister for Finance his plans to make arrangements to ensure that companies here can trade with Iran and overcome restrictions on banking transactions in a manner which has been successfully done by most other European countries. [26745/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I have been advised by the Department of Jobs, Enterprise and Innovation that Enterprise Ireland has organised several trade delegations to Iran in 2016 and 2017, as well as facilitating Enterprise Ireland client companies to explore the potential of the Iranian market. Enterprise Ireland will take these activities further next month (July) with a seminar on doing business in Iran. In addition, it is also planning the organisation of additional and larger trade delegations to Iran.

Enterprise Ireland sees particular opportunities in the Iranian market for client companies active in Agricultural and Food Production Technologies, Pharmaceuticals, Food and Healthcare. Another key sector is Aviation, as Iranian airlines are seeking to rapidly modernise their airliner fleet and have announced huge deals with Boeing, Airbus and Alenia for the purchase of upwards of 300 new aircraft. Many of these aircraft will be leased and as Ireland already has a pre-eminent role in global aviation leasing, opportunities should arise there for that sector.

The Deputy will be aware that, as a result of the Joint Comprehensive Plan of Action (JCPOA), the European Council has lifted nuclear-related economic and financial EU sanctions concerning Iran although some EU restrictive measures still remain in place with respect to Iran regarding human rights violations. The JCPOA is considered a positive development which, it is hoped will allow Irish banks to review and possibly relax their risk assessments of services which facilitate funds transfers and receipts to and from Iran.

The Department of Foreign Affairs and Trade have informed me that since the implementation of the JCPOA, there has been a jump in EU-Iran trade and that banks across Europe are moving carefully into handling business with Iran again. While there is still some caution in all EU banks regarding the application of the new international rules, it is expected that banks in Ireland and in all member states will gain confidence as the situation continues to evolve.

It is important however for the Deputy to note that Banks are designated persons under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, and consequently have Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) obligations to meet under that legislation. In meeting these obligations, banks are required to adopt a risk based approach as to how they conduct their business and who they conduct it with.  I therefore have no role in influencing the risk tolerances banks should accept in this area and consequently cannot direct them as to what approach they should adopt.

Finally, my understanding is that Irish businesses and Irish banks are working to try and address this challenge. In this regard, officials of the Department of Jobs, Enterprise and Innovation inform me that Irish exports to Iran amounted to some €76M in 2015 and that Iran is an important target market for State development agencies such as Enterprise Ireland and Bord Bia.  

The Government will continue to monitor the situation.