The Bush administration announced sweeping new sanctions against Iran Thursday — the harshest since the takeover of the U.S. Embassy in 1979 — charging anew that Tehran supports terrorism in the Middle East, exports missiles and is engaging in a nuclear build up, reported AP.
Secretary of State Condoleezza Rice
Rice said:
Many of the Iranian regimes’ most destabilizing policies are carried out by two of its agencies: the Islamic Revolutionary Guard Corps, or the IRGC, and the Quds Force, an arm of the IRGC. Because of the Revolutionary Guard’s support for proliferation and because of the Quds Force support for terrorism, acting under U.S. law and consistent with our international obligations, the United States today is designating both of these groups. We are similarly designating three Iranian state-owned banks: Bank Melli and Mellat, for their involvement in proliferation activities, and Bank Saderat as a terrorist financier. We are also designating several additional Iranian individuals and organizations.
What this means is that no U.S. citizen or private organization will be allowed to engage in financial transactions with these persons and entities. In addition, any assets that these designees have under U.S. jurisdiction will be immediately frozen. These actions will help to protect the international financial system from the illicit activities of the Iranian Government and they will provide a powerful deterrent to every international bank and company that thinks of doing business with the Iranian Government.
I want to repeat, the United States and our partners are fully committed to a diplomatic solution with Iran. If the Iranian Government fulfills its international obligation to suspend its uranium enrichment and reprocessing activities, I will join my British, French, Russian, Chinese, and German colleagues and I will meet with my Iranian counterpart anytime, anywhere. We will be open to the discussion of any issue. But if Iran’s rulers choose to continue down a path of confrontation, the United States will act with the international community to resist these threats of the Iranian regime.
Let me finish by saying a few words directly to the Iranian people. We in the United States have no conflict with you. We want you to have every opportunity to develop and prosper in dignity, including the peaceful use of nuclear power. So we hope that your government will embrace the path of cooperation that we and the international community continue to offer.
Secretary of the Treasury Henry M. Paulson said:
Iran exploits its global financial ties to pursue nuclear capabilities, to develop ballistic missiles and fund terrorism. Today we are taking additional steps to combat Iran’s dangerous conduct and to engage financial institutions worldwide to make the most informed decisions about those with whom they choose to do business.
The Iranian regime’s ability to pursue nuclear and ballistic missile programs in defiance of UN Security Council resolutions depends on its access to international commercial and financial systems. Iran also funnels hundreds of millions of dollars each year through the international financial system to terrorists. Iran’s banks aid this conduct using a range of deceptive financial practices intended to evade even the most stringent risk management controls.
In dealing with Iran, it is nearly impossible to know one’s customer and be assured that one is not unwittingly facilitating the regime’s reckless behavior and conduct. The recent warning by the Financial Action Task Force, the world’s premier standard setting body for countering terrorism finance and money laundering, confirms the extraordinary risks that accompany those who do business with Iran.
The IRGC is so deeply entrenched in Iran’s economy and commercial enterprises, it is increasingly likely that if you are doing business with Iran, you are doing business with the IRGC. We call on responsible banks and companies around the world to terminate any business with Bank Melli, Bank Mellat, Bank Saderat, and all companies and entities of the IRGC.
As awareness of Iran’s deceptive behavior has grown, many banks around the world have decided as a matter of prudence and integrity that Iran’s business is simply not worth the risk. It is plain and simple: reputable institutions do not want to be bankers to this dangerous regime. We will continue to work with our international partners to prevent Iran from abusing the international financial system and to advance its illicit conduct.