WASHINGTON (CN) – The most comprehensive set of financial sanctions since those imposed against Iraq have been issued against Iran to encourage it to abandon its quest for a nuclear weapon and to end its sponsorship of terrorism, according to regulations released by the Treasury Department’s Foreign Assets Control Office.
The regulations implement banking and financial services restrictions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act, signed by President Obama on July 1. The act followed and built upon United Nations Security Council Resolution 1929, which imposed multilateral sanctions against Iranian banks, businesses and banks and financial services companies that do business with Iran.
As the UN resolution recommends, the new regulations also ban the opening of new branches of Iranian banks and forbid financial institutions acting under U.S. jurisdiction from establishing new relationships with Iranian banks, insurance companies and other financial services.
The new regulations prohibit the opening or maintaining a U.S. correspondent account or U.S. payable-through account for a foreign financial institution on behalf of the government of Iran or people identified by the Security Council and State Department as agents of Iran, the Revolutionary Guard or businesses identified as their proxies.
Other agencies will continue to release regulations implementing those sections of the act for which they are responsible.