The U.S. Says It Is Not Hindering Foreign Banks' Transactions with Iran

A senior U.S. official said on Wednesday, April 4, that the country is not preventing international banks from conducting transactions with Iran. However, his remarks are unlikely to satisfy Iranian traders and officials who have strongly complained about problems related to currency transfers in the international banking network. According to Reuters, after Iran fulfilled its commitments under the nuclear agreement last July, most international sanctions against Tehran were lifted in January 2016. However, the U.S. government has not lifted some sanctions imposed due to Iran's missile programs and support for terrorism. As a result, some international banks are still hesitant to deal with Iran for fear of penalties and fines from the U.S. government, leading the Iranian government and economic companies to conclude that the country has not yet benefited from the economic advantages contingent on the lifting of sanctions. Chris Backemeyer, a U.S. State Department official responsible for Iran sanctions, said on Wednesday that U.S. officials have met with economic decision-makers in various countries and assured them that Washington would adhere to its commitments under last year's nuclear agreement with Iran. During his visit to Dubai to meet with local and international company executives and outline U.S. policy regarding transactions with Iran, Backemeyer stated at a press conference, 'We have tried to make our policy towards Iran and based on the nuclear agreement completely clear to everyone.' He noted that U.S. banks are still not allowed to transact with Iran due to the prohibition on borrowing from the U.S. financial network in dollars. However, the U.S. government will not penalize foreign banks that conduct transactions with Iran in other currencies. This U.S. State Department official emphasized that international banks must be able to demonstrate that their transactions do not involve Iranian entities that are still on the sanctions list, such as institutions affiliated with the Revolutionary Guard. Reuters adds that these statements are unlikely to instill confidence in foreign banks to transact with Iran. Most international banks believe that Iran's sanctions laws are very complex, and any small mistake in complying with these regulations could lead to heavy fines and even sanctions against these institutions by the U.S. government. Therefore, they remain apprehensive about dealing with Iran. A manager of an international bank in Dubai stated that given the numerous instances of heavy fines imposed on foreign banks for dealing with Iran in recent years, concerns about the recurrence of these penalties by the U.S. government have not been alleviated. Ayatollah Ali Khamenei, the Supreme Leader of Iran, stated in his remarks on the first day of Farvardin that the U.S. is effectively violating its commitments under the nuclear agreement by fostering doubt and fear in the international banking network. He added, 'Foreign banks are unwilling to deal with Iran for fear of the U.S.' Chris Backemeyer rejected the Iranian leader's claim, stating, 'We are acting in good faith. Our policy is not to impose sanctions and penalties for any excuse or reason, and it has never been our intention to create ambiguity or deceive anyone.' Nevertheless, he added that the U.S. government cannot tell each company or international bank how to transact with Iran, as each contract and transaction has its own specific characteristics. Regarding concerns from some international companies about the possibility of renewed sanctions related to Iran's nuclear program, he said, 'As long as the Iranian government adheres to its commitments under this agreement, the U.S. government will not reimpose these sanctions. A rapid return to sanctions is part of the conditions outlined in last year's agreement to ensure Iran's compliance with its commitments.'