US hits all of Iran's financial sector with sanctions

Treasury Secretary Steven Mnuchin, walks from the office of Senate Majority Leader Sen. Mitch McConnell of Ky., as he leaves the Capitol, Wednesday, Sept. 30, 2020, in Washington. Mnuchin earlier met with House Speaker Nancy Pelosi of Calif. (AP Photo/Manuel Balce Ceneta)
Treasury Secretary Steven Mnuchin, walks from the office of Senate Majority Leader Sen. Mitch McConnell of Ky., as he leaves the Capitol, Wednesday, Sept. 30, 2020, in Washington. Mnuchin earlier met with House Speaker Nancy Pelosi of Calif. (AP Photo/Manuel Balce Ceneta) (Copyright 2020 The Associated Press. All rights reserved.)

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.”

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.”