U.S. Guidance on Latest Iran Order Leaves Due Diligence Unclear: Sanctions Experts

By Colby Adams

An executive order signed Sunday to implement new banking sanctions against Iran doesn't clarify the extent to which U.S. financial institutions must peel back transactions to discover potential links to Iran's government, say analysts. Under the order, which follows a similar round of EU sanctions adopted last month, U.S. banks must freeze the assets of Iran's government and private banks, including funds owned by the nation's central bank. The previous sanctions regime, adopted in 1995, only required U.S. banks to reject such transactions. The order mirrors sanctions mandated by Congress in late December as part of an omnibus defense appropriations...