US Treasury: Washington imposes new Iran-related sanctions

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The Department of the Treasury has announced that the US has imposed fresh sanctions on Iranian banks and individuals.

The sanctions were imposed on Iran's central bank chief, three other individuals and an Iraq-based bank under programs supposedly targeting supporters of global terrorism.

In a statement on its website, the US Treasury said it had sanctioned Iran's central bank governor Valiollah Seif and the Iraq-based Al-Bilad Islamic Bank, among others.

Steven Mnuchin, US Treasury secretary, smiles during the Milken Institute Global Conference in Beverly Hills, California, US, April 30, 2018. /VCG Photo

US Treasury Secretary Steven Mnuchin accused Seif of covertly funneling money on behalf of the revolutionary guard’s external arm, Quds Force (IRGC-QF), through Al-Bilad Islamic Bank “to enrich and support the violent and radical agenda of Hezbollah.”

The move cuts off Iran’s use of a critical banking network, he said. The United States classifies Lebanon’s Shi’ite Muslim movement Hezbollah, which is backed by Iran, as a terrorist organization.

“It is appalling, but not surprising, that Iran’s senior-most banking official would conspire with the IRGC-QF to facilitate funding of terror groups like Hezbollah, and it undermines any credibility he could claim in protecting the integrity of the institution as a central bank governor,” Mnuchin said in a statement.

Speaking in Brussels, Iran’s Foreign Minister Javad Zarif called the sanctions against Seif illegal.

Iranian Foreign Minister Mohammad Javad Zarif leaves after a ministerial meeting of EU/E3 and Iran at the European headquarters in Brussels, May 15, 2018. /VCG Photo

The US Treasury also blacklisted Ali Tarzali, assistant director of the international department of Iran’s central bank, and the chairman of Al-Bilad Islamic Bank, Aras Habib.

It said Habib had a history of smuggling money to Iranian-backed Iraqi groups and “enabled the IRGC-QF’s exploitation of Iraq’s banking sector to move funds from Tehran to Hezbollah, jeopardizing the integrity of the Iraqi financial system.”

The department said the sanctions would not immediately affect central bank transactions. It said, however, that sanctions being reimposed after the withdrawal of the United States from the Iran nuclear deal would affect certain US-dollar transactions by the central bank starting from Aug. 7, 2018.

The fresh move came just days after the US imposed sanctions against nine Iranian individuals and entities it accused of transferring millions of dollars to the Islamic Revolutionary Guard Corps-Qods Force on May 10.

The IRGC is by far Iran’s most powerful security organization and has control over large stakes in Iran’s economy and huge influence in its political system. The Quds Force is an elite unit in charge of the IRGC overseas operations.

(With input from Reuters)