The U.S. Treasury Department issued an update to the Specially Designated Nationals (SDN) and Blocked Persons list on Monday, involving Non-proliferation Designations and Iranian Financial Sanctions Regulation Identifications.
The primary focus of the information released has been on sanctions imposed on Iran’s Bank Tejarat. The third-largest bank in Iran has not only been cut off from the U.S. financial system, but the international financial system as well, as the European Union (EU) also levied sanctions on Bank Tejarat.
Bank Tejarat has been accused of involvement with companies that are under sanctions because of their connection to Iran’s nuclear and missile proliferation programs. Bank Tejarat has been linked to the Revolutionary Guard Corps and other Iranian military organizations and accused of providing them financial services. The Revolutionary Guard Corps also is a sanctioned entity on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) SDN list.
The move to sanction Bank Tejarat is expected to impair Iran’s nuclear program, as its ability to finance the program is weakening. All of Iran’s major financial institutions have now been cut off from the U.S. financial system and have been subjected to punitive measures. Iran has dug itself into a deep whole as its currency is depreciating and its access to the international financial system is all but obliterated.
The U.S. is upping the ante against Iran and letting its leadership know that if you’re developing nuclear weapons, we’re going to make it so you suffer financial isolation. What this means for U.S. financial institutions and companies is, if you’re caught doing business with Bank Tejarat or any of its affiliates, you risk being cut off from the U.S. financial system as well.
Does your institution have a watch list check system in place to assure regulatory compliance?