Europe joins the fight FOR Islamic terror
And you thought it was bad that the Europeans
refused to declare Hezbullah a designated terror organization.
This just might be worse (Hat Tip:
Shy Guy). Twice in the last two weeks, the Europeans have
lifted sanctions that were already in place against Iranian banks.
The European Union's Court has ruled for the second time to lift the sanctions against the Saderat Bank, Iran's and the MIddle East's largest bank.
The decision was reached due to lack of sufficient evidence proving that the bank was connected to Iran's nuclear program.
Last week, the court issued a similar ruling for Bank Mellat, the biggest private sector lender in Iran.
These rulings, if not appealed and overthrown, will considerably weaken the sanctions imposed by the West on Iran.
The whole point was that these banks are owned by the Iranian Revolutionary Guards, and the Guards - who run the nuclear program - are using them to pay for it.
What could go wrong?
Labels: Bank Mellat, Bank Saderat, Iran sanctions regime, Iranian nuclear threat, Iranian Revolutionary Guard
'You f---ing Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians'
British-based Standard Chartered Bank stands to lose its license to operate in New York State because it
hid $250 billion in transactions with Iran in violation of US law.
The New York State Department of Financial Services (DFS) said Standard Chartered "schemed" with the Iranian government and hid from law enforcement officials some 60,000 secret transactions to generate hundreds of millions of dollars in fees over nearly 10 years, also exposing the US banking system to terrorists, drug traffickers and corrupt states.
The loss of a New York banking license would be a devastating blow for a foreign bank, effectively cutting off direct access to the US bank market. Standard Chartered processes $190 billion every day for global clients, the New York bank regulator said.
...
The New York regulator, headed by former prosecutor Benjamin Lawsky, ordered Standard Chartered to explain why the bank should not lose its state license and the ability to process dollar transactions. Lawsky also ordered the bank to bring in an outside consultant to monitor its transactions.
"Standard Chartered Bank operated as a rogue institution," Lawsky said in the order.
...
Lawsky said Standard Chartered moved money through its New York branch on behalf of Iranian financial clients, including the Central Bank of Iran and state-owned Bank Saderat and Bank Melli, that were subject to US sanctions.
Monday's order alleged that Standard Chartered removed codes on money transfers and altered message fields, inserting phrases such as "NO NAME GIVEN" to hide the nature of the transactions.
At the center of concern were alleged "U-Turn" transactions, involving money moved for Iranian clients among banks in Britain and the Middle East and cleared through Standard Chartered's New York branch, but which neither started nor ended in Iran.
Such transactions were permissible until November 2008, when the Treasury Department prohibited them on concerns that they were being used to evade sanctions, and that Iran was using banks to fund nuclear and missile development programs.
The New York order also alleged that even as some banks exited the U-Turn transactions, Standard Chartered hustled to "take the abandoned market share." In a December 2006 memo titled, "Project Gazelle, Report on Iranian Business," bankers discussed how to increase "wallet share" with Iranian clients.
And for those of you who wonder why sanctions aren't having any effect on Iran, this ought to be a clue.
In an unusual look inside a bank, the regulator described how Standard Chartered officials debated whether to continue Iranian dealings. In October 2006, the top official for business in the Americas, whom the regulator did not name, warned in a "panicked message" that the Iranian dealings could cause "catastrophic reputational damage" and "serious criminal liability."
A top executive in London shot back: "You f---ing Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians." The reply showed "obvious contempt for US banking regulations," the regulator said.
You mean the Obama administration hasn't given Standard Chartered an exemption from the sanctions? That might be the first instance I've heard where there was no exemption.
What could go wrong?
Labels: Bank Mellat, Iran sanctions regime, Iranian central bank
Iran to be banned from SWIFT?
The European Union may
ban certain Iranian entities from using the Belgian-based SWIFT bank transfer system, a move that would make it extremely difficult for those entities to pay and be paid for goods and services.
The system, known as the Society for Worldwide Interbank Financial Telecommunication, or Swift, oversees the network used by most of the world's largest banks to conduct financial wire transfers. American lawmakers have charged in recent weeks that Iranian companies and banks blacklisted by the U.S. and EU have been using Swift to evade international sanctions.
Both houses of the U.S. Congress have drafted legislation threatening to penalize Swift's board of directors and owners if they didn't ban the suspect Iranian entities from using its network.
A formal ruling by EU financial regulators on Swift is expected by late February or early March, according to European and U.S. officials. Swift's board is expected to comply, according to these officials.
"Yes, [it's a] done deal," said a European official. "[It] should be explicitly confirmed by the end of February, early March."
...
According to Swift's public records, many of Iran's largest banks, which have been sanctioned by the U.S. and EU, have continued to use the Swift system in recent months. These include: Banks Sepah, Saderat, and Mellat.
Congressional officials said they're not certain if the new EU regulations will also ban Iran's central bank from using Swift. Banning Bank Markazi would almost completely freeze Iran out of the global banking system, they said.
What took so long? Two years ago, this sanction might have had a chance of stopping Iran.
Labels: Bank Mellat, Iran sanctions regime, Iranian central bank, Iranian nuclear threat
Turkish bank violating Iran sanctions?
I'm sure you'll all be shocked to hear that the United States is considering sanctioning a
Turkish institution (bank) for violating the Comprehensive Iran Sanctions, Accountability and Disinvestment Act (CISADA) (Hat Tip:
Joshua I).
David Cohen, nominated to be Treasury's undersecretary for terrorism and financial crimes, told a U.S. Senate confirmation hearing that he will vigorously enforce the Comprehensive Iran Sanctions, Accountability and Disinvestment Act (CISADA).
The law, aimed at curbing Iran's nuclear program, effectively requires banks to choose between dealing with the U.S.-led financial system or to continue doing business with Iran.
...
Cohen did not name any of the banks, but said that one institution in Turkey was effectively violating the sanctions.
"We are committed to enforcing the law," Cohen added. "Generically, we have a financial institution (in Turkey) that is not responsive to our overtures and it is engaged in activity that is sanctionable under CISADA. We will pursue that very vigorously."
I
wonder who that
might be. Heh.
Labels: Bank Mellat, Iran sanctions regime, Turkey
