Azerbaijan, Baku, Feb.18 / Trend T. Konyayeva /
The U.S. Department of Treasury designated Iranian Bank Refah for providing financial services to the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL) and the Iran Aircraft Manufacturing Industrial Company (HESA), the Treasury's official statement says.
"Treasury has now exposed and sanctioned 20 banks owned by the Government of Iran for supporting Iran's nuclear and missile programs or terrorism," said Under Secretary for Terrorism and Financial Intelligence Stuart Levey. "The pervasiveness of this illicit conduct explains why legitimate financial institutions everywhere are deciding to shun Iranian banks."
According to the statement, in recent years, Bank Refah has facilitated millions of dollars of weapons-related purchases by MODAFL. These purchases included missiles and tanks and enabled Iran's leadership to maintain its fighter jets and submarines. Bank Refah also facilitated payments from HESA to businesses and individuals linked to Iran's weapons-related procurement.
This action was taken pursuant to the order, which is aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their supporters, thereby isolating them from the U.S. financial and commercial systems, the statement reads.
MODAFL is the arm of the Iranian military that oversees Iran's ballistic missile program, and HESA is owned or controlled by MODAFL and provides support to the Iran's Islamic Revolutionary Guard Corps.
In August 2010, Treasury issued the Iranian Financial Sanctions Regulations to implement the financial provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. Under these regulations, Treasury may prohibit, or impose strict conditions on, foreign financial institutions' access to the U.S. financial system for facilitating significant transactions or providing significant financial services for a financial institution designated by the U.S. - such as Bank Refah - in connection with Iran's WMD proliferation or support for international terrorism.
The European Union imposed sanctions against Bank Refah in July 2010 for taking over Bank Melli's ongoing operations following the sanctions imposed on the latter bank by the European Union.
Iranian nuclear program has caused concern since 2003, when the IAEA became aware of its concealed activity. In late 2003, Iran signed the Additional Protocol to the Treaty on the Nonproliferation of Nuclear Weapons and voluntarily announced about the suspension of uranium enrichment. However, it returned to this activity.
The enriched uranium can be used to produce nuclear weapons. However, it is necessary as fuel for atomic power plants. Several countries, including the U.S., are sure that Iran strives to develop nuclear weapons and call for to prevent this development. Tehran denies all the charges, saying that its nuclear program has peaceful purposes.
Until now, the UN Security Council adopted six resolutions, four of which are aimed at imposing sanctions against Iran, requiring to abandon uranium enrichment, and two resolutions containing warnings.
The last resolution adopted by the U.N. Security Council on June 9, 2010 provides for new sanctions against Tehran in connection with its refusal to cease uranium enrichment . After adopting Resolution 1929, the U.S. Congress passed a bill on unilateral anti-Iran sanctions on June 24.Later, in July, EU leaders, and later foreign ministers, proposed at a meeting in Brussels additional sanctions against Iran.
On Oct. 25, EU foreign ministers approved imposing additional sanctions against Iran at a meeting in Luxembourg. Restrictions imposed by the EU include the ban on the sale of equipment, technologies and services to Iran's energy sector as well as target Iran's banking and financial sectors.