Financial Crime World

Iran Slapped with Harsh Financial Sanctions Regime by US Administration

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The United States has taken a series of actions to impose significant financial sanctions on Iran, aiming to increase pressure on the country to comply with its international obligations and address concerns over its nuclear program.

  • The new measures expand energy-related sanctions to target individuals and entities that provide goods, services, technology, or support worth $1 million or more for the development of Iran’s petroleum resources.
  • Additionally, sanctions will be imposed on those who contribute to the maintenance or expansion of Iran’s petrochemical industry with transactions valued at $250,000 or more.

Designation under Executive Order 13382

  • The US Department of State has designated 11 individuals and entities under Executive Order 13382 for their role in Iran’s weapons of mass destruction program.
  • Several companies linked to the Atomic Energy Organization of Iran have been targeted in this designation.

Identification as a Jurisdiction of “Primary Money Laundering Concern”

  • The Islamic Republic of Iran was identified as a jurisdiction of “primary money laundering concern” under Section 311 of the USA PATRIOT Act, citing its support for terrorism and pursuit of weapons of mass destruction.
  • This designation creates a clear public record of the scope and depth of Iran’s illicit conduct and details the involvement of Iranian government agencies and banking institutions in WMD proliferation, support for terrorism, and other illicit activities.

Special Measures Proposed by FinCEN

  • The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) filed a notice proposing to impose special measures against Iran.
  • US financial institutions will be required to implement additional due diligence measures to prevent improper indirect access by Iranian banking institutions to US correspondent accounts.

Commitment to Holding the Iranian Regime Accountable

  • The US Administration has reiterated its commitment to holding the Iranian regime accountable for its refusal to comply with international obligations regarding its nuclear program.
  • The Administration warned that Iran will continue to face increasing international pressure until it addresses legitimate concerns over the nature of its nuclear program.