Iran Suspended from Green Card Convention Due to Banking Restrictions

TEHRAN (Iran News) TEHRAN – The Governor of the Central Insurance of Iran has cited banking transaction restrictions as the primary reason for Iran’s suspension from the Green Card Convention. He stated that the Green Card Office in Iran has become independent of the Central Insurance and is now managed by the private sector.

According to ISNA, last year, the International Green Card Convention suspended Iran’s membership, creating challenges for Iranian drivers abroad, especially transit truck drivers.

Investigations indicate that Iran’s suspension was mainly due to sanctions that hindered banking transactions for insurance payments and claims between Iran and foreign entities.

In an interview with ISNA, Parviz Khoshkalam Khosroshahi, the Governor of Central Insurance (Bimeh Markazi), explained the suspension’s causes and efforts to resolve the issue. He stated that all member countries of the Green Card Convention must have a local Green Card office to coordinate insurance claims and liaise with the relevant international council. Insurance companies issuing these policies must be linked to the international Green Card Council for cross-border payment coordination.

Initially, Iran’s Green Card Office operated within Central Insurance since before the 1979 revolution. However, as Iran faced increasing difficulties in transferring funds, some compensation payments remained unpaid.

“For instance, if an Iranian truck driver was involved in a fatal accident in Turkey, the Turkish Green Card Office would cover the victim’s compensation and then seek reimbursement from Iran’s Green Card Office,” Khosroshahi explained. However, due to banking sanctions, these payments could not be processed, leading to Iran’s suspension.

To address the issue, Iranian authorities decided to separate the Green Card Office from the Central Insurance and establish it as an independent non-governmental institution, similar to other countries. This office is now privately managed under the supervision of member insurance companies.

Khosroshahi emphasized that Iran must demonstrate to international partners that direct money transfers between Iran’s Green Card Office and other member offices are feasible. Addressing concerns over money laundering risks, he stressed that transactions must be conducted transparently via official banking channels rather than exchange brokers.

He concluded by stating that if a banking mechanism is established and agreed upon, the issue could be resolved—unless further obstacles arise. However, the core challenge remains the financial transaction restrictions imposed on Iran.