Refah Kargaran Bank
Bank Refah Kargaran is an unlisted Iranian bank headquartered in Tehran and linked to the Social Security Organization of Iran. Founded in 1960, it provides retail, corporate, payment and digital banking services nationwide, with a longstanding focus on workers and pensioners. It is a material domestic financial counterparty, subject to significant U.S. sanctions constraints.
Operations & footprint
Products and services
Refah Kargaran Bank provides retail banking, deposits, lending, corporate banking, payment services, card services, digital banking, guarantees, foreign-exchange-related services, remittances, and financial services for workers, pensioners, businesses, public-sector-linked entities, and institutional clients across Iran.
Operations and assets
The bank operates a nationwide branch network supported by internet and mobile banking channels, payment and card services. Its operating model combines retail deposits and lending with corporate and institutional banking, guarantees, remittances and worker-focused credit products.
Geographic footprint
Iran nationwide, with headquarters in Tehran and branches across the country.
Ownership & group structure
Ownership
The Social Security Organization of Iran is the bank’s main shareholder.
Parent company
Social Security Organization of Iran.
Commercial and investment relevance
Refah Kargaran Bank is relevant for investors assessing Iran's state-linked banking network, payroll and pensioner finance, payment access, retail deposits, corporate lending, and counterparty risk. It can support analysis of how worker-linked financial flows and institutional relationships affect liquidity, credit allocation, and formal money movement. Due diligence should include sanctions screening, ownership review, service reliability, payment-system exposure, branch and digital-channel continuity, cybersecurity risk, and verification of any direct or indirect commercial relationship. For domestic counterparties, the bank provides access to retail, payroll-adjacent, pensioner, payment, lending and institutional banking channels. Internationally connected transactions require heightened legal and compliance review because of its OFAC designation.
Constraints, risk & compliance
Key risks and constraints
The bank’s U.S. sanctions designation restricts its usability in transactions with U.S.-nexus parties and can constrain correspondent banking, foreign-exchange-related activity and cross-border payment arrangements. Its main-shareholder relationship with Iran’s Social Security Organization also concentrates exposure to state-linked and social-security-linked financial flows.
Sanctions and compliance considerations
Bank Refah Kargaran was designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control as a Specially Designated National on 8 October 2020 under Executive Order 13902 for operating in Iran’s financial sector. OFAC’s designation applies to all offices worldwide.
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Frequently asked questions
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What does Bank Refah Kargaran do?
It provides retail and corporate banking, deposits, lending, cards, payments, digital banking, guarantees, remittances and related services, with products for workers, pensioners, businesses and institutions.
Who is Bank Refah Kargaran linked to?
The Social Security Organization of Iran is the bank’s main shareholder.
Where does Bank Refah Kargaran operate?
The bank is headquartered in Tehran and operates branches across Iran.
Is Bank Refah Kargaran subject to U.S. sanctions?
Yes. OFAC designated Bank Refah Kargaran as an SDN on 8 October 2020 under Executive Order 13902; the designation applies to all offices worldwide.