U.S. Treasury Deputy Secretary: We Have Clearly Explained the Risks of Doing Business in Iran

The Deputy Secretary of the United States Treasury states that Washington has made it clear to foreign companies engaged in trade with Iran that they face "significant risks in conducting transactions with the IRGC or its affiliated companies." Sigal Mandelker, the Deputy Secretary of the Treasury for Terrorism and Financial Intelligence, spoke on January 17 at a Senate Banking Committee meeting to explain the activities of her office. Mandelker referred to Iran as a "rogue state" that is "seeking to undermine the international financial system," stating that "this country is at the forefront of supporting terrorism and financing terrorist groups such as Hamas and Hezbollah, the repressive regime of Bashar al-Assad, and Shiite militia groups in Bahrain, Iraq, Syria, and Yemen." The U.S. Treasury Deputy noted the "extensive presence" of the IRGC in Iran's economic landscape, adding, "We have made it clear both in the U.S. and abroad that companies doing business in Iran face significant risks in conducting transactions with the IRGC or its affiliates." Mandelker emphasized that this risk is heightened "due to the lack of economic transparency in Iran." She cited the sanctions imposed on a network linked to the IRGC's Quds Force at the end of November as an example. On November 30, the U.S. Treasury sanctioned a network of individuals and companies allegedly involved in counterfeiting Yemeni banknotes for the IRGC. The Treasury stated that this network "employs European companies, Gulf governments, and others around the world to continue their destabilizing activities in the region." Deputy Secretary Steve Mnuchin also mentioned Iran alongside North Korea, stating that these countries engage in "deceptive actions to access financial resources." Sigal Mandelker stated, "We will continue our efforts to protect the international financial system and combat Iran's relentless campaign to support terrorism, create instability in the region, and mistreat its citizens... and as Secretary Mnuchin has emphasized, the United States will not be indifferent to injustices and human rights violations by the Iranian government." The Iranian government has rejected the accusation of "supporting terrorism." The Islamic Republic, which along with Russia is one of the main supporters of Bashar al-Assad, claims that its presence in Syria is to combat terrorism and at the request of the ruling government there. Iranian officials do not hide their support for the Houthi rebels in Yemen, and senior IRGC officials have spoken of "advisory presence" in that country. The Houthis do not have representation at the United Nations, and the legitimate government remains that of Abdrabbuh Mansur Hadi, which is supported by Saudi Arabia. Iran does not consider Hezbollah and Hamas as terrorist groups. Iranian officials have yet to respond to the recent statements by the U.S. Deputy Treasury Secretary. The Iranian government, led by Hassan Rouhani, and the U.S. government, led by Barack Obama, along with France, the UK, Germany, China, and Russia, reached an agreement in July 2015 that limited or halted Iran's nuclear activities and lifted related sanctions. This agreement faced criticism from Republicans, and Donald Trump has consistently criticized it both before and after his election victory. Nevertheless, the United States remains in it; although the last time Trump extended the suspension of sanctions, he emphasized that it was the "last time" he would do so and called for reforms to the "JCPOA." Iran is also facing other sanctions related to accusations of supporting terrorism, human rights violations, or its missile program. In recent months, the U.S. has increased the number of organizations and individuals under sanctions.