US government sanctions 18 Iranian banks

Oct 8, 2020

The United States announced new sanctions on Iranian banks on Thursday. Iran’s government said the measures will hurt its citizens.

The Department of the Treasury sanctioned 18 Iranian banks based on Executive Order 13902, which enables the US government to sanction sectors of the Iranian economy in order to deny the Iranian government funds. The US reasoning is that the money would be used to fund terrorism, Iranian proxies in the Middle East and Iran’s nuclear program. Iran denies that it is building a nuclear weapon.

“Our sanctions programs will continue until Iran stops its support of terrorist activities and ends its nuclear programs,” said Secretary of the Treasury Steve Mnuchin in a press release.

The Treasury Department also cited Executive Order 13382, which allows sanctions on entities pursuing weapons of mass destruction.

The sanctions designated Iranian banks the department described as “major.” Any assets the banks have in the United States can now be blocked. Anyone doing business with the banks could also be subject to legal action, according to the department.