The meaning of sanctioning Iran’s Central Bank

On Friday, September 20, the U.S. Treasury Department upgraded the Trump administration’s maximum pressure policy targeting the regime in Iran by sanctioning the mullahs’ Central Bank. The regime’s National Development Fund and the Etemad Tejarate Pars, also sanctioned recently, have been used to cloak financial transfers for Iran’s Ministry of Defense Armed Forces Logistics’ military purchases.

These new measures are the U.S.’ first response to attacks targeting Saudi oil facilities on September 14. Despite the Iran-backed Houthis in Yemen claiming responsibility, all signs and evidence indicate Iran’s regime playing a direct role in this attack and the use of Iranian weaponry, including cruise missiles and drones.

The latest sanctions are a continuation of a focus shift by the Treasury and State departments from the diplomatic quarrel over the 2015 nuclear deal – known as the Joint Comprehensive Plan of Action (JCPOA) – and nuclear sanctions, to a policy pinpointing on the regime’s official entities, support for global terrorism and the Revolutionary Guards (IRGC).

Back in April, the State Department designated the IRGC as “Foreign Terrorist Organization,” making any and all economic and logistical transactions with the IRGC sanctionable.

As Washington focuses on drying up Iran’s resources used to fund terrorism, the three latest entities slapped with sanctions provides a new stigma deterring any future financing initiatives with the Iranian regime.

Iran will most definitely use hidden overseas accounts to access newly sanctioned international accounts, allowing intelligence communities to gain more knowledge and render future actions to further deny Tehran of terror-supporting funds.

Furthermore, even though former Obama officials advise Iran’s regime to wait out U.S. President Donald Trump in hopes of a Democrat winning the 2020 elections, the latest round of sanctions will make reversing Trump’s Iran policy and returning to Obama-style engagement with Iran far more difficult, if not impossible.

In response to Washington’s new measures, Iran apologists and lobbyists, and those favoring Obama-style appeasement vis-à-vis Iran’s regime already have and will continue to argue that the U.S. administration has exhausted all sanctions options when it comes to Tehran’s regime. Experts on the other side of the aisle in this argument say there remains a long slate of measures available for the U.S. government to deny the mullahs’ regime the ability to overtly and covertly fund terrorist groups.

Those countries and voices claiming Iran was not behind the attacks on Saudi oil fields and new sanctions being meaningless are either unwilling to accept responsibility of any action, or merely apologist/lobbyists pushing Tehran’s narrative in mainstream media.

As a reminder, the Central Bank of Iran has been sanctioned especially for its role in financing terrorist groups, i.e. Hezbollah in Lebanon. Back in 2011, when Congress slapped sanctions on this bank, the multiple grounds stated were terrorism, money laundering and financing nuclear/missile development.

Parallel to his appeasement of Tehran’s regime, Obama classified these measures as a “nuclear sanction” to lift all sanctions from the Central Bank of Iran under the JCPOA framework. The latest measures, based specifically on terrorism, would make any decision to removing such sanctions as bending over backwards in the face of Iran’s unbridled and inarguable support for terrorism.

Alongside the Central Bank, these new sanctions also target Iran’s NDF, an entity Tehran has repeatedly diverted money from to specifically finance military operations.

In January 2018, media reports showed the regime authorizing $4 billion withdrawal from the NDF, allocating $2.5 billion to its defense sector, and the remainder to Iran’s state-run broadcaster – used to spread the regime’s propaganda – and various development projects. In January 2019, the Iranian regime authorized another $1.5 billion withdrawal to finance their military ambitions.

Senior Iranian officials are directing NDF’s decision, with a ten-member board of trustees including Iran’s president, attorney general and oil minister, along with the Central Bank governor. The Trump administration should make it crystal clear that their apparatus will target any entity in Iran involved in funding the mullahs’ bellicosity. The NDF board trustees and the executive board should also be sanctioned to cut off a vital regime lifeline.

Another talking point used by Iran pundits and apologists/lobbyists is the accusation of anyone supporting sanctions against Iran’s regime is “defending Saudi Arabia.” The new U.S. sanctions are, in fact, a clear response to a brash attack by the Iranian regime endangering global energy supplies.

Those sitting on the throne in Tehran and the IRGC only understand the language of force and firmness. Iran is carefully weighing the international community’s measures in response to its latest episode of malevolence and terrorism.

The facts are clear. Iran’s Central Bank and such entities fuel the regime’s terrorism using money that belongs to the Iranian people. As mentioned before, there is a wide range of measures that can add to the crippling effect of Trump’s maximum pressure. The more the mullahs are disabled, the more the Iranian people will be able to escalate their protests and ultimately bring an end to this ruthless regime.

One thought on “The meaning of sanctioning Iran’s Central Bank

  1. Thank you Mr. Heshmats for your very informative article. Yes Iran regime financial institutions has been crushed one after another by sanction which is targetting blood vessels of terrorism, thanks to US firm policy. Same policy with maximum pressure should be continued till Iranians topple the Mullhas regime.

    Like

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