Kunlun Bank Will Stop Processing Payment Services From Iran

- Oct 25, 2018-

China Kunlun Bank will stop accepting Iranian payment business. Reuters Beijing - Four sources familiar with the situation told Reuters that Kunlun Bank, an important channel for China's trade with Iran, will stop processing payments from Iran due to pressure from the United States to impose sanctions on Iran. Kunlun Bank is the main official channel for the flow of funds between China and Iran. According to sources, the bank has verbally informed customers that it will stop accepting the amount of renminbi paid by Iran to China from November 1. Kunlun Bank is controlled by China National Petroleum Corporation (CNPC), and four sources said the bank had quietly suspended the euro payment service from Iran at the end of August. China is the largest buyer of Iranian oil, and almost all of its oil purchases are paid through Kunlun Bank. China buys about $1.5 billion worth of oil from Iran every month until September. But sources in the oil industry say state-owned refineries have been cutting back on crude oil purchases from Iran since October to comply with US sanctions on Iran. Kunlun Bank’s previously unreported move underscores the growing pressure on the Chinese government as the US government imposes sanctions on Iran’s financial and oil industries from early November.