Frequently Asked Questions on the impact of the lifting of the restrictions by Hong Kong Monetary Authority (HKMA).
Q. When does the lifting of the restrictions by the HKMA take effect?
A. The lifting of the restrictions took effect on the date specified in the HKMA’s press release namely on 24 June 2016.
Q. When will Melli Bank plc Hong Kong Branch (MBHK) resume offering banking products and services?
A. Products and services will be phased in as and when the required systems and controls have been assessed to be adequate and effective for the resumption of activities. When products and services become available they will be announced on the Melli Bank plc’s website http://www.mellibank.com
Q. What products and services will be offered?
A. MBHK’s business model focuses on offering products and services in relation to the trade between Iran and other countries, in particular the countries in the Asia Pacific region which are Iran’s major trading partners (see PRODUCTS AND SERVICES TO BE PHASED IN below).
Q. Will MBHK start to reactivate the existing correspondent banking relationships and establish new relationships?
A. With the restrictions lifted, MBHK can take immediate action to activate existing and establish new correspondent banking relationships (Nostro Account relationships). MBHK will be taking immediate steps to carry out compliance due diligence or enhanced due diligence on such relationships.
Q. Will MBHK provide correspondent banking services to existing and new counterparties?
A. MBHK can take action to activate existing and establish new relationships with counterparties (Vostro Account relationships). Such counterparties will include the banks issuing letters of credit. MBHK will be taking immediate steps to carry out enhanced compliance due diligence on such counterparties. Banking transactions with these counterparties will be pending the confirmation that adequate and effective systems and controls are in place.
Q. Can MBHK commence staff recruitment and purchase of goods and services without the need of obtaining regulatory approval?
A. With the lifting of the restrictions, MBHK can commence recruitment of staff, purchase of goods and services (such as IT goods and services and other goods and services for the purposes of MBHK’s operations) without the need of obtaining regulatory approval.
Q.Will existing MBHK customers be able to make withdrawals immediately?
A.Withdrawal of existing customer deposits which were only permitted with the prior approval from the HKMA will be immediately available. Customer due diligence will be completed before any transactions are undertaken.
Q. What products and services will be phased in?
A. The products and services to be phased in include:
i.Advising and negotiating letters of credit.
ii.Opening of accounts and acceptance of deposits incidental to trade transactions.
iii.Trade finance transactions (such as issuance, confirmation and discounting of letters of credit proceeds and issuance of guarantees) will be initially processed by the London Head Office of MBHK
Q. When will products and services become available?
A. The products and services will be offered as and when MBHK is in a position to do so. Melli Bank plc’s website http://www.mellibank.com will show the up-to-date information on products and services which have become available.