It was an announcement sure to raise some eyebrows among sanctions compliance officers: on Aug. 29, the international trade group Economic Cooperation Organization said it would not enforce sanctions against Iran, according to news reports. The group, which counts Turkey, Pakistan, Uzbekistan and Kazakhstan among its 10 members, included the announcement in broader comments on the ineffectiveness of U.S. sanctions. The comments, purportedly made by ECO's Secretary General Mohammad Yahya Maroofi, were reported most widely via Iran-based media outlets. The announcement sounded "like something we really need to worry about," according to a compliance officer at a large bank in...
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.
A United Nations report that Iran has slowed uranium production and cooperated with some inspections of a nuclear site will do little to dissuade proponents of sanctioning the country, according to a former U.N. inspector.
The sanctions put pressure on U.S. banks to conduct greater due diligence on correspondent accounts to determine if they are linked to the Middle Eastern nation. That will likely continue a trend of foreign institutions dropping business dealings with the country.