Jeremy Paner Explains Limits on Iran’s Access to Frozen Assets and Challenges for Businesses Looking to Operate in Iran

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.

Paner also discussed with the publication the continued challenges and uncertainty for international businesses looking for opportunities involving Iran, despite potential rollback of sanctions.

“It would take at least several years for the US to lift all of its Iran-related sanctions,” Paner said.

Paner specificality cited government and IRGC intervention in the Iranian economy and widespread corruption as “insurmountable” obstacles “for all but a handful of unique projects.”

Paner concluded that the continued uncertainty would make it “impossible for any sizeable bank or multinational to even begin seriously considering the business case” that might “offset the unmitigated business, reputational and legal risk.”