Iran’s Bank Secrecy Laws Under Fire: US Slams Islamic Republic for Supporting Terrorism and Evading Sanctions
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The United States has taken decisive action to crack down on Iran’s bank secrecy laws, designating the country as a jurisdiction of “primary money laundering concern” under section 311 of the USA PATRIOT Act. This move is part of a broader effort to increase pressure on Tehran to comply with international obligations and address concerns over its nuclear program.
New Sanctions Aim to Disrupt Iran’s Oil and Gas Industry
The US has also expanded energy-related sanctions on Iran, authorizing penalties against individuals and entities that provide goods, services, technology, or support for the development of petroleum resources or maintenance/expansion of the petrochemical sector. These new sanctions aim to disrupt Iran’s ability to develop its oil and gas industry and evade international sanctions.
Designations Target Iran’s Weapons of Mass Destruction Program
Eleven individuals and entities have been designated under Executive Order 13382 for their role in Iran’s weapons of mass destruction program, including centrifuge development and uranium enrichment activities. These designations include:
- Nuclear Reactors Fuel Company
- Noor Afzar Gostar Company
- Fulmen Group
- Yasa Part
- Several other entities linked to the Atomic Energy Organization of Iran
Central Bank of Iran and Private Iranian Banks Pose Illicit Finance Risks
The US Department of Treasury has identified the Central Bank of Iran and private Iranian banks as posing illicit finance risks for the global financial system. The finding details the bank’s role in facilitating Iran’s illicit conduct and efforts to evade international sanctions.
Consequences for Iran’s Financial Secrecy Laws
The move is seen as a major blow to Iran’s ability to maintain its financial secrecy laws, which have long been criticized by the international community. It also sends a strong message to the Iranian government that it must address concerns over its nuclear program and support for terrorism.
Additional Measures Proposed
The US Treasury has proposed additional measures to prevent indirect access by Iranian banking institutions to US correspondent accounts, including requirements for enhanced due diligence. This move aims to protect the US financial system from Iranian illicit activity.
Implications for Iran’s Economy
The designations and sanctions are seen as a major escalation in the US campaign to pressure Iran into compliance with international obligations. The move is likely to have significant implications for Iran’s economy and its ability to maintain its financial secrecy laws.