Banks Struggling to Comply With Latest Iranian Sanctions

By Colby Adams and Brian Monroe

Domestic banks and foreign financial institutions with U.S. branches are scrambling to comply with a tough new U.S. law and subsequent regulations designed to cripple the Iranian financial system, say analysts. Under the Iranian Financial Sanctions Regulations, U.S. financial institutions that open or maintain correspondent accounts for foreign banks tied to Iran's nuclear program face massive civil and criminal penalties. Foreign banks continuing to do business with designated individuals and entities would lose access to the U.S. financial system, under the measures released August 16 by the U.S. Treasury Department's Office of Foreign Assets Control. U.S. banks will also be...