Why were World Bank Group payments in respect of the loans to Iran recently delayed?
Disbursement requests received on World Bank projects in Iran were temporarily delayed in the final months of 2007 because of difficulties in executing through the normal channels as a result of certain banks being placed on sanctions lists. Arrangements have been put in place to ensure disbursements under project agreements are utilizing banking channels that are not subject to sanctions lists. Additionally, the World Bank strengthened screening mechanisms to ensure that project disbursements are screened in advance to prevent proceeds being paid to sanctioned entities or individuals. These procedures are being applied to all contracts.
