Obama Administration's Efforts to Facilitate Dollar Transactions of Banks with Iran

On Friday, October 8, the U.S. Department of the Treasury announced a new business guide that will facilitate transactions by foreign companies with Iran and financial transfers between Iran and financial institutions. The guide states that some dollar transactions of banks and financial institutions with Iran, which were previously prohibited, will be allowed provided that these funds do not enter the U.S. financial system. According to the Associated Press, under the new decision by the U.S. Treasury, broad and general sanctions against Iranian companies managed by individuals subject to U.S. sanctions will be lifted. This new decision is announced approximately nine months after the implementation of the JCPOA (Joint Comprehensive Plan of Action) and the lifting of international sanctions against Tehran, while some officials of the Islamic Republic continue to criticize the 'lack of cooperation' from several major global financial institutions and banks with Iranian banks. According to the comprehensive nuclear agreement between Iran and the P5+1 countries (JCPOA) signed in July of last year, it was agreed that in exchange for Iran's actions to limit its nuclear activities, international sanctions and U.S. sanctions against Tehran would be lifted. However, some Iranian officials have repeatedly accused the U.S. of 'not adhering to its commitments under the JCPOA' in recent months. Among them is Ayatollah Khamenei, the Supreme Leader of the Islamic Republic, who on August 25, during a meeting with the President and members of the Iranian government, accused the U.S. of 'dishonesty and betrayal' in the JCPOA, stating: 'One cannot trust the promises of any of the governments in America, and one should not take action based on their promises.' He had previously accused the U.S. of not fully implementing its commitments under the JCPOA. Simultaneously, with the implementation of the JCPOA on January 16 of last year, international sanctions against Iran were lifted, but some U.S. sanctions against Tehran related to its missile program, human rights situation, and what the U.S. calls 'the Islamic Republic's support for terrorist groups' remain in place. In this context, Javad Larijani stated that the structure of sanctions has been maintained and larger sanctions should be expected. The International Energy Agency reported that Iran's oil production has returned to pre-sanction levels. Salehi stated that the incomplete lifting of sanctions could jeopardize the future of the JCPOA. The U.S. Energy Secretary said that they have fulfilled all their commitments under the JCPOA.