Jeremy Paner Explains Limits on Iran’s Access to Frozen Assets

Jeremy Paner analyzed the practical and legal hurdles that could delay Iran’s access to billions of dollars in frozen overseas funds with Arabian Gulf Business Insight.

In the article, Paner explained that even if U.S. policy allows for the unfreezing of Iranian funds, significant barriers remain.

Paner noted that a key issue is where the funds are held, which determines if those assets are formally blocked pursuant to U.S. law or by the policy of the relevant financial institutions. Most of the funds remain inaccessible to Iran not because of strict legal prohibitions, but rather due to institutions acting “out of fear of the wrath of the U.S. government.”

He emphasized that resolving these challenges will not be immediate.

“It’s an ongoing, painfully detailed conversation,” Paner said. “This is not a handshake and paper-napkin-scrawled deal. It’s clear from the [US-Iran memorandum of understanding] that U.S. government sanctions experts have not been involved in the process up to this point.”

“Walking through the minute details of how to unblock or unfreeze money will require lots of meetings, lots of calls ahead of any sort of actual action. If this is to be undone even halfway carefully, it could take six months.”

Paner further explained that any release of funds is likely to be gradual and tightly controlled, as financial institutions would structure transactions to ensure compliance with humanitarian objectives.

“It’s going to be piecemeal, transaction-by-transaction, bank-by-bank, and from the Iranian perspective painfully slow,” Paner said.

Read the article.