Please ensure Javascript is enabled for purposes of website accessibility
US Hits All of Iran's Financial Sector With Sanctions
gvw_ap_news
By Associated Press
Published 5 years ago on
October 8, 2020

Share

WASHINGTON — The Trump administration has blacklisted virtually all of Iran’s financial sector, dealing another blow to an economy that is already reeling under U.S. sanctions. The move will deepen tensions with European nations and others over Iran.

Thursday’s move hits 18 Iranian banks that had thus far escaped the bulk of re-imposed U.S. 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 U.S. 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 a 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.”

The Move Comes as the U.S. Has Stepped up Efforts to Kill the 2015 Iran Nuclear Deal

European nations have opposed the blanket financial services blacklisting because it will open up their biggest banks and and other companies to U.S. penalties for conducting business with Iran that had previously been allowed.

Iranian Foreign Minister Mohammed Javad Zarif reacted angrily to the designations, calling them a “crime against humanity” at a time of global crisis. “Amid Covid19 pandemic, U.S. regime wants to blow up our remaining channels to pay for food & medicine,” he said in a tweet. “Iranians WILL survive this latest of cruelties. But conspiring to starve a population is a crime against humanity. Culprits & enablers — who block our money — WILL face justice.”

The move comes as the U.S. has stepped up efforts to kill the 2015 Iran nuclear deal that President Donald Trump withdrew from in 2018. Since then, Trump has steadily increased pressure on Iran by imposing sanctions on its oil sales, blacklisting top government officials and killing a top general in an airstrike.

Last month, the administration unilaterally announced that it had restored all international sanctions against Iran that had been eased or lifted under the nuclear deal. And, having been ridiculed by most members of the U.N. Security Council for claiming to have retained the right to restore international sanctions despite no longer being a member of the deal, the administration has continued to seek to boost its leverage with Iran.

Critics Say the Sanctions Will Further Cut off Iran’s Ability to Import Humanitarian Goods

While almost the entire rest of the world, which has an interest in preserving the deal, has vowed to ignore those sanctions, violating them will come with significant risk of losing access to the U.S. financial system. Some believe that Thursday’s action could destroy any chance of salvaging the accord by making it impossible for Iranian banks to have any relationships with their foreign counterparts.

Critics say the sanctions will further cut off Iran’s ability to import humanitarian goods that are especially needed during the coronavirus pandemic, although U.S. officials insist there are carve-outs for legitimate items such as food and medicine. Relief organizations and others, however, say the exemptions still starve the Iranian people of essentials.

Thursday’s decision, which was first reported by The Washington Post, follows months of internal administration debate about the best way to proceed with Iran, particularly as Trump faces a difficult reelection challenge against former Vice President Joe Biden, who has said he wants to return to the nuclear deal.

Until Wednesday, the Treasury Department had opposed the step, arguing that it would adversely affect U.S. relationships with Europe. However, Iran hawks in Congress and outside the government have long sought the cut-off.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

DON'T MISS

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

DON'T MISS

Fresno County’s New Breeding Ordinance Could Shut Down 50 Operations

DON'T MISS

NATO Leaders Set to Back Trump Defense Spending Goal at Hague Summit

DON'T MISS

Fresno County Wildfire Quickly Contained. How Did They Do It?

DON'T MISS

Lender’s Intervention Halts City of Fresno’s Eviction Attempt at Granite Park

DON'T MISS

Clovis Unified Faces Lawsuit Alleging Years of Neglect and Sexual Abuse at Fancher Creek

DON'T MISS

Suspect in Bombing at California Fertility Clinic Dies in Federal Custody

DON'T MISS

US Airstrikes Failed to Destroy Iran’s Nuclear Sites, Sources Say

DON'T MISS

Stephen Miller Expands Power in Second Trump Term, Defies Legal Limits

UP NEXT

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

UP NEXT

Clovis Man Sentenced to 8 Years in Federal Prison in Deadly Fentanyl Case

UP NEXT

Victims Identified as Death Toll Climbs to 8 in Lake Tahoe Boating Tragedy

UP NEXT

Florida to Build ‘Alligator Alcatraz’ Detention Center for Migrants in Everglades

UP NEXT

Americans Worry Conflict With Iran Could Escalate, Reuters/Ipsos Poll Finds

UP NEXT

Advisory Warns of ‘Heightened Threat Environment’ in US After Iran Strikes

UP NEXT

Amazon’s Prime Day 2025 Levels Up With Four Days of Deals Starting July 8

UP NEXT

Voice of America Parent Terminates Over 600 More Staff in Likely Death Knell

UP NEXT

US Court Lets Trump Keep Control of California National Guard for Now

UP NEXT

Massive Security Breach: 16 Billion Passwords Leaked From Apple, Google, Facebook Accounts

NATO Leaders Set to Back Trump Defense Spending Goal at Hague Summit

4 hours ago

Fresno County Wildfire Quickly Contained. How Did They Do It?

4 hours ago

Lender’s Intervention Halts City of Fresno’s Eviction Attempt at Granite Park

5 hours ago

Clovis Unified Faces Lawsuit Alleging Years of Neglect and Sexual Abuse at Fancher Creek

5 hours ago

Suspect in Bombing at California Fertility Clinic Dies in Federal Custody

6 hours ago

US Airstrikes Failed to Destroy Iran’s Nuclear Sites, Sources Say

6 hours ago

Stephen Miller Expands Power in Second Trump Term, Defies Legal Limits

6 hours ago

FTA Unloads on Fresno Unified After Skipping External Search for Chief Academic Officer

6 hours ago

Fresno Man Dies After Alleyway Attack. Police Investigating

7 hours ago

Poll: Most Californians Prefer Lower Taxes and Fewer Services, Skeptical of Gov’t Spending

7 hours ago

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

Former New York Governor Andrew Cuomo on Tuesday conceded to state lawmaker Zohran Mamdani in the Democratic primary election for New York C...

31 minutes ago

Former New York governor and New York City mayoral candidate Andrew Cuomo speaks during the primary election night rally in New York City, U.S., June 24, 2025. REUTERS/Kylie Cooper
31 minutes ago

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

People hold “I Voted” stickers on Democratic primary day in New York, Tuesday, June 24, 2025. After months of campaigning, caustic debates and a deluge of attack ads, the consequential Democratic primary for mayor of New York City comes to a head on Tuesday as voters stream to the ballot box in blistering heat. (Hilary Swift/The New York Times)
1 hour ago

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

4 hours ago

Fresno County’s New Breeding Ordinance Could Shut Down 50 Operations

President Donald Trump arrives at a dinner for NATO heads of state and governments hosted by Dutch King Willem-Alexander and Dutch Queen Maxima, on the sidelines of a NATO Summit, at Huis ten Bosch Palace in The Hague, Netherlands June 24, 2025. (Reuters/Toby Melville)
4 hours ago

NATO Leaders Set to Back Trump Defense Spending Goal at Hague Summit

A 180-acre wildfire in Cantua Creek was fully contained Tuesday afternoon, with CalFire crediting nearby roads for helping crews quickly stop the Monterey Fire from spreading. (CalFire)
4 hours ago

Fresno County Wildfire Quickly Contained. How Did They Do It?

5 hours ago

Lender’s Intervention Halts City of Fresno’s Eviction Attempt at Granite Park

5 hours ago

Clovis Unified Faces Lawsuit Alleging Years of Neglect and Sexual Abuse at Fancher Creek

California Fertility Clinic Bombing Investigation
6 hours ago

Suspect in Bombing at California Fertility Clinic Dies in Federal Custody

Help continue the work that gets you the news that matters most.

Search

Send this to a friend