Source: US Weighs Dropping Iran's IRGC from Terrorism List

Members of the IRGC march during a parade. Reuters file photo
Members of the IRGC march during a parade. Reuters file photo
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Source: US Weighs Dropping Iran's IRGC from Terrorism List

Members of the IRGC march during a parade. Reuters file photo
Members of the IRGC march during a parade. Reuters file photo

The United States is considering removing Iran's Revolutionary Guards from its foreign terrorist organization blacklist in return for Iranian assurances about reining in the elite force, a source familiar with the matter said on Wednesday.

The source said Washington had not decided what might be an acceptable commitment from Tehran in exchange for such a step, which would reverse former US President Donald Trump's 2019 blacklisting of the group and draw sharp Republican criticism, Reuters reported.

The move was the first time Washington had formally labeled part of another sovereign government as a terrorist group.

The Iranian Revolutionary Guard Corps (IRGC) is a powerful faction in Iran that controls a business empire as well as elite armed and intelligence forces that Washington accuses of carrying out a global terrorist campaign.

The source, who spoke on condition of anonymity, said the Biden administration was weighing whether to drop the terrorist designation "in return for some kind of commitment and/or steps by Iran, with respect to regional or other IRGC activities."

The Biden administration's consideration of such a tradeoff was first reported by Axios, citing Israeli and US sources.

Multiple sources have said dropping the designation is one of the last, and most vexing, issues in wider indirect talks on reviving the 2015 deal under which Iran limited its nuclear program in return for relief from economic sanctions.

Asked about the possibility of removing the IRGC from the US terrorism list, US State Department spokesman Ned Price declined to comment beyond saying that sanctions relief is at the heart of negotiations to revive the nuclear deal.



Israeli Finance Minister Says Banks Should Not Obey EU Sanctions on Settlers

20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
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Israeli Finance Minister Says Banks Should Not Obey EU Sanctions on Settlers

20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)
20 July 2022, Israel, Barkan: Right-wing settlers march to build a settlement in the West Bank near Barkan. (dpa)

Israel's Finance Minister Bezalel Smotrich on Thursday condemned the country's banks that have refused to provide services to Israeli settlers sanctioned by the European Union and warned they may have to pay compensation to them.

The EU last year imposed sanctions on five Israeli settlers for violence against Palestinians and Smotrich said there were reports of sanctions being considered against other settlers.

But in a letter to the banking supervisor, he said Israeli banks should not follow a "zero risk" policy since it leads to the abandonment of Israeli clients "under the guise of compliance with foreign sanctions."

In a statement quoting his letter to the regulator, Smotrich called on banks to use their legal, economic, and international strength to fight "unjust sanctions", Reuters reported.

"The banks’ enormous profits enable them to take measured risks on behalf of their clients — especially when it comes to a national moral injustice," Smotrich, who leads the far-right Religious Zionism party, said.

Should banks continue to comply with sanctions and harm clients, Smotrich said he intended to promote immediate legislation that would require banks to pay substantial compensation to affected customers.

He also intends to require the Bank of Israel itself to offer banking services to citizens targeted by sanctions.

Responding to the letter, the Bank of Israel said that while banks must comply with international sanctions to avoid an array of risks, a draft directive it published on Thursday aimed to ensure appropriate banking services were available for the affected customers.

"Circumventing foreign sanctions regimes through the Israeli banking system exposes banking corporations to multiple risks, including compliance risks, anti-money laundering and counter-terror financing risks, legal risks, and reputational risks," the central bank said.

But it said it has taken steps to comply with sanctions "without banks resorting to blanket refusals to serve such customers."

While the sanctions in question concern Israeli settlers, the EU is reviewing its broad pact governing its political and economic ties with Israel in the face of mounting international pressure on Israel amid complaints about the lack of humanitarian aid reaching Gaza in the wake of the war triggered by Hamas' Oct. 7, 2023 attack.