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Banks Must Drop Correspondent Accounts Tied to Iran, U.S. Says
By Colby Adams
printThe U.S. Treasury Department Monday proposed designating Iran as a "primary money laundering concern" and requiring banks to end correspondent relationships with foreign institutions that transact for Iranians. The proposed designation, which would be made under Sec. 311 of the U.S. Patriot Act, would also require banks to better scrutinize their interbank relationships for Iranian ties. Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton announced the plan in a joint press conference, citing Iran's alleged support of terrorism and pursuit of nuclear weapons. In calling for restrictions on bank correspondent accounts, the White House chose the strongest of...
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