Professional Documents
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Article 1- The following terms as used in the instant Executive By-Laws shall
have the meanings designated below:
Law: The Law on Administration of Free Trade-Industrial Zones of the IRI, as
amended.
Executive By-Laws: The Executive By-Laws of Article 18 of the Law on
Administration of Free Trade-Industrial Zones of the IRI.
CBI: The Central Bank of Islamic Republic of Iran
High Council: The High Council of Free Trade-Industrial Zones of the IRI.
Free Zone Authority: The Organization governing each Free Trade-Industrial
Zone of the IRI.
Free Zone/Zone: Each of the Free Trade-Industrial Zones of the IRI, as specified
in compliance with the Law on Administration of Free Trade-Industrial Zones of
the IRI, as amended
Bank: The banks which are authorized to operate within a Free Zone
Branch: Iranian and/or foreign banks, institutes and their branches that are
authorized to operate within a Zone
Extra-Territorial Banking: The various types of banking operations that shall be
conducted utilizing exclusively foreign currencies
Representative Office: The representative offices of banks and credit institutes
that shall be established in a Zone.
Article 9- Exchange of foreign currencies with Rls and/or other foreign currencies
as well as foreign exchange transfers and transactions by natural persons and legal
entities in Free Zones shall be authorized.
Article 10- Transfer of foreign currencies from abroad to the Zones and vice versa
by natural persons and legal entities shall be authorized.
Note- Transfer of foreign currencies from inside the country to the Zones and vice
versa by natural persons and legal entities shall be in accordance with the laws and
regulations governing foreign currency in Iran.
Article 11- Foreign currencies exchange rates in the Zones and exchange of the
same with Rls shall be on the basis of supply and demand.
Article 29- Foreign Banks and Institutes as well as the Branches of foreign banks
and institutes shall be under the supervision of the CBI. In order to meet their
requirements, they shall be bound to provide CBI with the required information,
fully observing the provisions specified below. Hence, they shall be required to:
1. Fully observe monetary and credit policies approved by the CBI.
2. Deposit their statutory reserves with the CBI at the intervals and in the forms
determined by the CBI.
3. Prepare and determine the headings of the accounts as well as the financial
statements in a manner that shall be confirmed and approved by the CBI.
4. Observe and comply with the rules and regulations stipulated by the CBI,
including CBI’s requirements as to sufficiency of capital.
5. Dispatch and submit to the CBI the information and statistical data, in exact
conformity with the form as well as the intervals specified below:
- a summary of ledger as well as the statement of statutory reserve,
- financial statement including the balance sheet, and profit & loss account to be
certified by CBI- confirmed by independent auditors.
6. Provide and submit to the CBI other information and statistical data whenever
they shall be requested by the CBI. Evidently, such information and data shall be
considered “confidential” and therefore; they shall not be severally published.
7. Fully cooperate with CBI-dispatched inspectors who shall have an order in
writing, and to put at their disposal the required data and information.
Article 30- If, at the discretion of the CBI, perpetuation of the activities of a Bank
Unit in a Zone shall be risky, CBI shall be authorized to appoint an inspector who
shall be stationed in the Bank Unit concerned.
Chapter Six - Miscellaneous Regulations
Article 31- The expertise and professional knowledge of the members of the board
of directors, the managing director, the deputy managing director and/or the
members of the managing board of Banks and Institutes, as well as that of the
directors of Branches of Iranian and foreign Banks and Institutes in the Zones shall
be confirmed by the CBI.
Article 32- Bank Units in Free Zones shall be responsible to indemnify and
compensate the damages caused due to their operations that shall be sustained and
incurred by their customers. The managing directors and members of the board of
directors of Banks or Institutes in the Zones shall be responsible to indemnify and
compensate the damages caused due to their violation of the present regulations or
infringement of the relevant articles of association to their shareholders and/or
customers.
Article 33- In order to facilitate the clearing of checks and bank documents, a
cleaning chamber shall be set up by Bank Units in Free Zones, which shall be
approved and confirmed by the CBI. Expenditures for its operations shall be met
by the Bank Units concerned.
Article 34- The manner of keeping documents, papers and accounts books, the
manner of considering the violations and infringements, as well as the manner of
dissolution and declaration of bankruptcy of Bank Units and the instances and
cases that are not explicitly stipulated herein shall be according to the provisions of
the Monetary and Banking Law approved 1972.
Article 35- Directives and circulars relating to the monetary and banking matters
in free zones shall be drawn up and distributed for enforcement by CBIRI through
coordination with the secretariat of Free Trade-Industrial Zones.
Parviz Davoodi,