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Direct US-Iran banking channel could cement nuclear deal

Experts say the US Federal Reserve is the likeliest partner for Iran because US commercial banks are still wary of ties and the Fed is well equipped to monitor authorized trade.

A red London bus passes a branch of Iranian owned Bank Sepah International in London December 22, 2011. Hit by international sanctions, the Iranian banks in London linger on, unable to take on new business. The pressure on them is rising. Last month, the UK forbid its banks to do any business with Iranian banks after a new report from a nuclear watchdog highlighted further concerns about the possible military dimensions to Iran's nuclear programme.  REUTERS/Luke MacGregor  (BRITAIN - Tags: BUSINESS POLITICS
A bus passes a branch of the Iranian-owned Bank Sepah International in London, Dec. 22, 2011. — REUTERS/Luke MacGregor

As nuclear talks enter a crucial period ahead of the Nov. 24 deadline, one of the incentives the Barack Obama administration is dangling before Iran is a direct banking channel between a US and an Iranian financial institution, Al-Monitor has learned.

A former US diplomat familiar with the negotiations told Al-Monitor on condition that he not be named that such a proposal is on the table in talks between Iran and the five permanent members of the UN Security Council plus Germany (P5+1). An Iranian negotiator did not respond to a request for comment.

A Treasury Department spokesperson also declined comment. However, Tyler Cullis, a legal fellow and policy associate at the National Iranian American Council (NIAC) told Al-Monitor, “We’ve heard indications that the idea is being considered.”

Cullis said the creation of what is known as a "blessed channel" would serve several important purposes.

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