The U.S. Department of the Treasury turned up pressure on Iran by sanctioning 18 major banks in order to isolate it from the global banking system and thwart attempts to build nuclear weapons.
The Office of Foreign Assets Control (OFAC) today 16 Iranian banks for operating in Iran’s financial sector and one bank for being owned or controlled by a sanctioned Iranian bank. Additionally, today’s action includes the designation of an Iranian military-affiliated bank under Treasury’s counter-proliferation authority. These banks managed to avoid previous U.S. sanctions.
“Today’s action to identify the financial sector and sanction eighteen major Iranian banks reflects our commitment to stop illicit access to U.S. dollars,” said Secretary Steven T. Mnuchin. “Our sanctions programs will continue until Iran stops its support of terrorist activities and ends its nuclear programs. Today’s actions will continue to allow for humanitarian transactions to support the Iranian people.”
Treasury’s action was taken to deny the Iranian government financial resources that may be used to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks, and malign regional influence. Treasury imposed sanction on one bank for proliferation of weapons of mass destruction (WMD).
Current U.S. sanctions target oil sales, shipping and financial activities, but exempt food, medicine and other humanitarian items.
Sanctioned Banks
Amin Investment Bank, Bank Keshavarzi Iran, Bank Maskan, Bank Refah Kargaran, Bank-e Shahr, Eghtesad Novin Bank, Gharzolhasaneh Resalat Bank, Hekmat Iranian Bank, Iran Zamin Bank, Karafarin Bank, Khavarmianeh Bank (also known as Middle East Bank), Mehr Iran Credit Union Bank, Pasargad Bank, Saman Bank, Sarmayeh Bank, Tosee Taavon Bank (also known as Cooperative Development Bank), and Tourism Bank.
Additionally, Islamic Regional Cooperation Bank was sanctioned for being owned or controlled by Eghtesad Novin Bank.
In May 2020, Hekmat Iranian Bank, a bank servicing Iran’s armed forces, merged with Bank Sepah, which has served as a financial platform for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) to pay its agents abroad.
The banks sanctioned today are subject to the supervision and regulation by the Central Bank of Iran (CBI), for providing support to the Islamic Revolutionary Guards Corps (IRGC), its Qods Force (IRGC-QF), and its terrorist proxy, Hezbollah.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities after a 45-day wind-down period expose themselves to secondary sanctions or be subject to an enforcement action.
