Reuters: Iran Remains Outside the Scope of American Banks' Activities

Reuters reports, citing banking and political officials, that although nuclear sanctions have been lifted, sanctions related to 'terrorism' and 'human rights' continue to keep Iran away from the operational scope of American banks. These restrictions will also affect foreign banks operating in the United States. John Smith, director of the Office of Foreign Assets Control at the U.S. Treasury Department, stated during a congressional meeting that 'generally, U.S. primary sanctions against Iran remain in place.' The sanctions Mr. Smith referred to are mainly related to U.S. allegations of 'state-sponsored terrorism' and 'human rights violations.' Meanwhile, Washington continues to impose sanctions related to missile programs. Tehran has denied allegations of supporting terrorist activities. Iran has also consistently rejected annual reports from the U.S. and the United Nations regarding human rights violations in the country. Reuters, in its report dated February 14, noted that sanctions against a list of over 200 individuals and entities from the 'blocked' list are still ongoing. Many of these individuals, including members of the Revolutionary Guards, play a significant role in Iran's economic activities. An unnamed official from a major bank in New York told Reuters that the lifting of nuclear sanctions 'does not affect us at all.' According to this banking official, 'except for some very limited activities, we are still prohibited from trading with Iran.' Nevertheless, some legal measures are being undertaken to find legal solutions that could provide opportunities for American banks. Kamran Mohtasham, a spokesperson for Citigroup, one of the largest financial services companies in the world, told Reuters, 'We are still monitoring developments related to Iran.' However, banking restrictions will not only pertain to American banks but will also impact the activities of foreign banks in the U.S. as these banks will also be unable to conduct dollar transactions related to Iran through the U.S. banking system. Foreign banks that engage in transactions with sanctioned Iranian individuals and entities will also face the risk of legal actions from Washington and hefty fines, as in the past. In 2014, the French bank BNP Paribas paid nearly $9 billion in fines to the U.S. for its transactions, including those with Iran. Previous reports indicated that Tehran intends to reduce its dependence on the dollar and plans to receive delayed oil payments and the prices of new shipments in 'euros.' Meanwhile, Mohammad Javad Zarif, Iran's foreign minister, had asked the U.S. in mid-February to guarantee European banks that they would not be punished for conducting legitimate and legal transactions with Iran. In this regard, European banks are still 'hesitant' to revive their relations with Iran. Zarif: The U.S. should guarantee foreign banks for trading with Iran. Iran wants to receive 'euros' for its oil sales and debts.