FOR IMMEDIATE RELEASE
October 11, 2012
Phone: (212) 554-3296
UANI Announces Iran Rial Currency Printing Campaign
UANI Unveils Investigation into Iran Currency Printing Industry and Calls on EU Firms to Clarify Business Activities in Iran
While Iran continues to suffer from the dramatic fall of the rial and hyperinflation, some international companies continue to assist the regime and its Central Bank in printing and maintaining the rial's efficacy. Such assistance undercuts the global effort to isolate and sanction Iran for its defiance of internal law and its pursuit of an illicit nuclear weapon.
UANI has learned of two companies, Koenig & Bauer Aktiengesellschaft (KBA) and Flint Group S.A. (Flint), that may be playing an integral part in the printing of the rial. UANI has also learned that the firm De La Rue plc (DLR) has previously printed Iranian rials.
As the rial falls and confidence in it suffers, such companies key Iran's efforts to bolster and regain the rial's lost value. Without printing materials and technology the Iranian regime will be unable to forestall the continued fall of the rial. UANI calls on these companies to clarify the nature and extent of their work with the Iranian regime, to immediately terminate such business, and to reclaim any goods or machinery in Iran and remove them from Iranian soil.
KBA, of Germany, is the world's second-largest security bank note printing press manufacturer, and has sold printing presses to numerous Iranian entities. KBA currently maintains contacts with at least two Iranian companies, Techno Sanaye and Karapayam Publishing & Printing.
Flint, an ink and chemical supplier based in Luxemburg, works in Iran through SunColor Inks Co., and holds the patent for a trademarked family of banknote printing products repeatedly requested by the Central Bank of Iran.
UANI has also contacted DLR, a British firm whose machines have printed rials for the regime in the past, for clarification about any current ties to Iran.
United Against Nuclear Iran ("UANI") is writing to express its concern about the ongoing business of Koenig & Bauer Aktiengesellschaft ("KBA") in Iran, and the potential provision of banknote printing machinery and services by KBA subsidiary NotaSys SA ("NotaSys") to the Central Bank of Iran ("CBI") and the CBI's Security Printing and Minting Organization ("SPMO").
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UANI is therefore highly concerned with KBA's ongoing presence in Iran. KBA has previously sold printing presses to numerous Iranian entities and currently maintains contacts with at least two Iranian companies, Techno Sanaye and Karapayam Publishing & Printing. Furthermore, KBA's subsidiary KBA MetalPrint GmbH & Co. KG was listed as a member of the German-Iranian Chamber of Commerce as recently as 2010.
UANI is also concerned by the possibility that a KBA subsidiary, NotaSys, a leading producer of banknote printing services, has continued to provide machinery, materials, technical support, and/or consulting services to the CBI. Until 2001, NotaSys was known as De La Rue Giori, then an affiliate of De La Rue Plc ("DLR"). According to the latest publically available known information, DLR previously contracted with the CBI to produce multiple generations of Iranian banknotes. Given the highly complex nature of banknote printing and resultant long-term relationships between printers and central banks, UANI is concerned that the relationship between NotaSys and the CBI is ongoing. Accordingly, please clarify the extent of NotaSys business activities with the CBI or any other Iranian entities.
Moreover, in order to produce large numbers of high-security banknotes, the CBI has apparently turned to companies such as KBA for technical expertise, printing machinery and raw materials. The CBI recently released requests-for-tender ("RFTs") soliciting the supply of printing presses, security fibers, hologram application machines and chemicals and additives crucial to the banknote production process. Please clarify whether or not KBA has acted on any of these RTFs and if it is indeed providing technical expertise, printing machinery and raw materials to the CBI either directly or through a subsidiary or affiliate. UANI strongly believes that the only responsible action for KBA in light of the fact that the CBI is a sanction-designated entity under U.S. and EU law is for KBA to immediately and publicly reject CBI solicitations for KBA services.
Germany-based KBA and Swiss-based NotaSys should also be aware of relevant European Union sanctions that preclude European firms from supporting Iranian banknote production. In March 23, 2012, the EU enacted Council Regulation No. 267/2012, which prohibits the "delivery of newly printed banknotes and coinage to or for the benefit of the Central Bank of Iran. Clearly, KBA's business activities and partnership with the CBI would subject KBA to penalties under the foregoing regulations. Please also be advised that UANI will be contacting relevant regulatory officials in Germany and the EU to highlight the activities of KBA and other purveyors of currency printing products and expertise.
UANI finds KBA's apparent business in Iran particularly galling in light of its extensive contracts with the U.S. Department of Treasury and its role in U.S. banknote production. KBA has been the recipient of over $131 million in contracts from the U.S. Treasury's Bureau of Engraving and Printing, in addition to $2.39 million awarded to KBA subsidiary KBA North America by the U.S. Department of Defense.
Flint works in Iran through SunColor Inks Co., listed as "the exclusive representative for the FLINT GROUP CO in the Iran market." Further, Flint's Iran business is bolstered by trade seminars in Iran by "qualified staff" from Flint.
Moreover, in order to produce large numbers of high-security banknotes, the CBI has apparently turned to companies such as Flint for technical expertise, printing machinery and raw materials. The CBI recently released requests-for-tender ("RFTs") soliciting the supply of printing presses, security fibers, hologram application machines and chemicals and additives crucial to the banknote production process.
As you know, Flint holds the patent for a nyloprint®, a family of printing products able to produce extreme levels of detail and used extensively in banknote printing. However, UANI is highly concerned that nyloprint® is one of only two brand-name products explicitly requested in SPMO tenders, indicating that it is crucial to Iranian banknote production efforts. Please clarify whether or not Flint has acted on any of these RTFs and if it is indeed providing technical expertise, printing machinery and raw materials to the CBI either directly or through a subsidiary or affiliate. UANI strongly believes that the only responsible action for Flint in light of the fact that the CBI is a sanction-designated entity under U.S. and EU law is for Flint to immediately and publicly reject CBI solicitations for Flint materials services.
As you know, DLR is the last publically-known printer of Iranian banknotes, with the DLR imprint appear on the rial as late as 1993. Given the highly complex nature of banknote printing and resultant long-term relationships between printers and central banks, UANI is highly concerned that DLR has continued to provide machinery, materials, technical support, or consulting services to the CBI.
Click here to view UANI's Iran Rial Currency Printing Campaign website.
Click here to read UANI's full letter to KBA.
Click here to read UANI's full letter to Flint.
Click here to read UANI's full letter to DLR.
Click here to view UANI's Iran Currency Tracker.
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