Skip to main content

Clifford Chance

Clifford Chance

Briefings

Impact of US Treasury's Special Measures Against Iranian Financial Sector and State Department's Designations on Non-US Banks

22 November 2011

Last night, the Obama Administration unveiled additional sanctions measures directed at deterring transactions between non-US persons and Iran, including through additional restrictions on US correspondent banking activity and expanded authority to retaliate against entirely non-US activity involving Iran's energy sector.

First, the US Treasury Department ("Treasury") designated Iran as a jurisdiction of primary money laundering concern under Section 311 of the USA Patriot Act ("Section 311"). Treasury indicated an intention (through a preliminary rulemaking) to prohibit the opening or maintaining of correspondent accounts by any domestic financial institution for or on behalf of Iranian banking institutions, including, among others, the Central Bank of Iran, also known as Bank Markazi Iran ("Bank Markazi"). Second, the US State Department and Treasury's Office of Foreign Assets Control ("OFAC") designated various Iranian individuals and entities under Executive Order 13382 for their role in Iran's nuclear procurement networks. Third, and of greatest potential significance, President Obama issued Executive Order 13590 (the "Executive Order"), expanding the range of conduct involving the energy sector of Iran that could trigger US retaliatory measures against non-US persons.

Download PDF