US sanctions Iran’s central bank governor as "specially designated global terrorist"

US sanctions Iran’s central bank governor as
The US Treasury claims Iran's central bank governor helped send money to Israel's Lebanon-based enemy Hezbollah. / khamenei.ir
By bne IntelliNews May 15, 2018

The US has imposed sanctions on the governor of Iran's central bank, Valiollah Seif, accusing him of providing support for terrorist activities.

Both Seif and another senior official of the regulator, Ali Tarzali, were listed as "specially designated global terrorists" for allegedly assisting in funneling millions of dollars on behalf of Iran's Islamic Revolutionary Guard Corps' Quds Force (IRGC-QF)—the IRGC’s special forces unit responsible for extraterritorial operations—to support Lebanon's Hezbollah militant group, the US Treasury's Office of Foreign Assets Control (OFAC) announced.

"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," US Treasury Secretary Steven Mnuchin said. He added: "The United States will not permit Iran's increasingly brazen abuse of the international financial system."

Washington is clearly moving quickly to tighten the screws on Tehran since President Donald Trump on May 8 unilaterally withdrew the US from the Iran nuclear deal and said that he would be reimposing the highest level of sanctions on Iran.

However, ordinary Iranians are generally far from impressed when Trump gives insights into what he claims he knows about the Islamic Republic’s support for terrorism. For instance, many Iranians are taken aback when Trump claims, as he did in his nuclear deal exit announcement, that Iran supports terrorist groups including Islamic State and Al Qaeda. The two groups subscribe to Sunni Islam and have called for the death of all Shi’ite Muslims—90% of Iran’s population are Shi’ite. Iran also claims to have been more responsible than any other nation for military breakthroughs that have almost cleared Islamic State from Syria and Iraq, and in June last year suffered twin Islamic State terrorist attacks in Tehran that left 13 dead.

The other signatories to the nuclear deal and the EU have pledged to try and keep the deal together without Washington’s participation. That would entail protecting foreign companies that continue to do business with Iran from US sanctions.

The first evidence that not all such companies are convinced such protection can be arranged, or do not want to be subject to such shielding, is starting to come through. On May 15, Danish oil product tanker operator Torm said it has stopped taking new orders in Iran as a consequence of the sanctions scenario. The same day saw German insurer Allianz stating that it was preparing to wind down Iran-related business due to possible US sanctions. However, Reuters reported Allianz as adding that its Iran business was “totally minimal” and saying that it was also “waiting for and will consider any guidance that the EU and the German government may provide”.

The OFAC statement on Seif and Tarzali added that the designations "do not extend" to the Central Bank of Iran.

The Office also blacklisted Al-Bilad Islamic Bank in Iraq and its chairman, Aras Habib, claiming he assisted the IRGC-QF in moving funds from Tehran to Hezbollah.

It has also been announced by the US Treasury that, starting from August 7, the US will impose sanctions "on the purchase or acquisition of US dollars banknotes by the government of Iran". The following November 5, further sanctions will be reimposed on persons "knowingly engaging in certain significant transactions" with the Iranian central bank.

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