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US Blacklists All of Iran's Financial Sector

US Blacklists All of Iran's Financial Sector

Thursday, 8 October, 2020 - 18:00
A money changer counts out US dollars for a customer in Tehran's business district, Iran, January 20, 2016. REUTERS/Raheb Homavandi/TIMA

Washington has hit virtually all of Iran’s financial sector with sanctions, dealing another blow to an economy that is already reeling under US sanctions.


Thursday's move hits 18 Iranian banks that had thus far escaped the bulk of re-imposed US sanctions and, more importantly, subjects foreign, non-Iranian financial institutions to penalties for doing business with them. Thus, it effectively cuts them off from the international financial system.


“Today’s action to identify the financial sector and sanction eighteen major Iranian banks reflects our commitment to stop illicit access to US dollars,” said Treasury Secretary Steven 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.”


The action targets 16 Iranian banks for their role in the country's financial sector, one bank for being owned or controlled by another sanctioned Iranian bank and one military-affiliated bank, Treasury said in a statement.


Some of them had been covered by previous designations but Thursday's move places them all under the same authority covering Iran’s entire financial sector.


The targeted banks are the 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, Mehr Iran Credit Union Bank, Pasargad Bank, Saman Bank, Sarmayeh Bank, Tosee Taavon Bank, Tourism Bank and Islamic Regional Cooperation Bank.


Foreign companies that do business with those banks were given 45 days to wind down their operations before facing so-called “secondary sanctions.”


In response to the new sanctions, Iranian Foreign Minister Mohammad Javad Zarif accused the Trump administration of targeting Iran's "remaining channels to pay for food and medicine” in the midst of a pandemic.


"Amid Covid 19 pandemic, US regime wants to blow up our remaining channels to pay for food & medicine," Zarif said on Twitter. "But conspiring to starve a population is a crime against humanity."


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