Iran's Central Bank (CBI) has issued a new circular prohibiting payment of speculation capital without valid documents and mandating supervision of goods entry and exit, determination of commercial activity types, and action against any contract deviations, Tasnim reported on August 17.

The Central Bank requested all banks and credit institutions to quickly communicate these instructions to all relevant units according to circular number 96/149153 dated August 7, 2017, and carefully supervise their proper implementation.

The Central Bank addressed all banks and non-banking credit institutions, referring to feedback received regarding different procedures in the speculation facility payment process, demanding precise implementation of circular number 90/9703 dated April 12, 2011.

The circular mandates complete supervision over cash capital consumption, its return, and the speculation operation implementation process.

According to the Money and Credit Council's (MCC) approved "Speculation Contract Implementation Guidelines," banks or credit institutions must maintain full oversight of speculation operations.

Speculation capital in domestic commerce for goods purchases must be transferred directly to the seller's account only against valid pro forma invoices, remittances, goods quota letters, or valid purchase contracts and other supporting documents.

Agents must provide original invoices, warehouse receipts, transport bills, or any document proving goods purchase and delivery to the bank within a maximum of 15 days after using the capital.

The agent is prohibited from using bank or institution capital for non-commercial activities. The type of commercial activity and traded goods must be clearly stated in the contract between the bank and customer.

Relevant units of banks and credit institutions must continuously supervise the matching of acceptable costs, goods entry and exit to warehouses, goods ledger cards, and other related documents.