Officials said Iranian banks and the Teheran government were
increasingly using U-turn to avoid U.S. sanctions. They said Teheran
recruited Asian, African and European banks to handle Iranian foreign
transactions.
The Bush administration has determined that Iranian banks were aiding
Teheran's missile and nuclear program. Treasury has already imposed
sanctions on such Iranian state-owned banks as Melli, Mellat, Saderat,
Sepah, Future Bank and the Export Development Bank of Iran.
The latest measure, announced on Nov. 6, stipulated that no
U.S.-licensed bank could conduct a U-turn transaction for Iran. Officials
said the exception would be the transfer of Iranian funds to families or
humanitarian relief. The United States contains a small but wealthy Iranian
community, mainly located in Los Angeles.
"Allowable funds transfers under specific or general OFAC [Treasury's
Office of Foreign Assets Control] licenses would include: payments arising
from over-flights of Iranian air space; legal services; intellectual
property protection; and authorized sales of agricultural products,
medicine, and medical devices to Iran," Treasury said.
