Press Release from the Department of the Treasury, January 23, 2012Footnote 1
The U.S. Department of the Treasury today designated Iran's third-largest bank, Bank Tejarat, for providing financial services to several Iranian banks and firms already subject to international sanctions for their involvement in Iran's weapons of mass destruction (WMD) proliferation activities. With today's action, 23 Iranian-linked financial institutions, including all of Iran's largest state-owned banks, have been sanctioned by the U.S. based on their involvement in Iran's illicit activities.
“At a time when banks around the world are cutting off Iran and its currency is depreciating rapidly, today's action against Bank Tejarat strikes at one of Iran's few remaining access points to the international financial system,” said Treasury Under Secretary for Terrorism and Financial Intelligence, David S. Cohen. “Today's sanction against Bank Tejarat will deepen Iran's financial isolation, make its access to hard currency even more tenuous, and further impair Iran's ability to finance its illicit nuclear program.”
Bank Tejarat was designated pursuant to Executive Order (E.O.) 13382 (Blocking Property of WMD Proliferators and Their Supporters) for providing financial services to Bank Mellat, the Export Development Bank of Iran (EDBI), the Islamic Republic of Iran Shipping Lines (IRISL), and the Ministry of Defense for Armed Forces Logistics (MODAFL), all of which were previously designated by the the Treasury Department or the Department of State for their involvement in Iran's WMD proliferation activities. Trade Capital Bank also was designated today for providing financial services to EDBI and for being owned or controlled by Bank Tejarat.
Today's designations of Bank Tejarat and Trade Capital Bank could result in sanctions under the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA) for foreign financial institutions that conduct business with Bank Tejarat or Trade Capital Bank. Under CISADA, foreign financial institutions that knowingly facilitate significant transactions or provide significant financial services for an Iranian-linked financial institution designated by the U.S.— such as Bank Tejarat or Trade Capital Bank—face the loss of their direct access to the U.S. financial system.
Bank Tejarat has nearly 2,000 branches throughout Iran, as well as foreign branches in Paris, France and Dushanbe, Tajikistan. Trade Capital Bank is a Minsk, Belarus-based bank that is owned by Bank Tejarat.
Bank Tejarat has directly facilitated Iran's illicit nuclear efforts. For example, in 2011, Bank Tejarat facilitated the movement of tens-of-millions of dollars in an effort to assist the Atomic Energy Organization of Iran's (AEOI) ongoing effort to acquire uranium. The AEOI, which reports directly to the Iranian president, is the main Iranian organization for research and development of nuclear technology, and manages fissile material production programs. In addition to being identified in the Annex to E.O. 13382, AEOI is sanctioned by the United Nations under Security Council Resolution 1737.
Bank Tejarat has repeatedly assisted U.S.-designated banks in circumventing international sanctions. In providing financial services to Bank Mellat and EDBI in the past few years, Bank Tejarat has also supported the activities of subsidiaries and subordinates of Iran's Islamic Revolutionary Guard Corps, the Defense Industries Organization and MODAFL. Like Bank Tejarat, Trade Capital Bank facilitates Iranian access to the euro by bypassing European regulators.
Bank Tejarat has also provided banking services for IRISL and its U.S. designated affiliates Safiran Payam Darya Shipping Co., South Shipping Line Iran and Khazar Sea Shipping Lines. South Shipping Line was also designated for sanctions by the United Nations in UNSCR 1929.
To date, the U.S. has designated 23 Iranian-linked financial institutions under E.O. 13382 and E.O. 13224, as detailed in the fact sheet.
Joint Statement from Secretary Geithner and Secretary Clinton, January 23, 2012Footnote 2
The U.S. Departments of Treasury and State today released the following statement from Secretary Tim Geithner and Secretary Hillary Clinton welcoming additional European Union sanctions against Iran:
We welcome today's decision by the European Union to ban imports of Iranian crude oil and petroleum products, freeze the assets of the Iranian central bank, and take additional action against Iran's energy, financial, and transport sectors.
The measures agreed to today by the EU Foreign Affairs Council are another strong step in the international effort to dramatically increase the pressure on Iran. They are consistent with steps the U.S. previously has taken and with new U.S. sanctions on Iran that the President signed into law on December 31, 2011. These new U.S. sanctions intensify the ongoing pressure on Iran and strengthen the impact of existing measures by targeting transactions with the Central Bank of Iran and by providing strong incentives to reduce Iran's ability to earn revenue from its oil exports. Taken in combination with the many other sanctions on Iran that continue to be implemented by the United States and the international community, this new, concerted pressure will sharpen the choice for Iran's leaders and increase their cost of defiance of basic international obligations.
The United States and our international partners are committed to preventing Iran from acquiring nuclear weapons. That is why we have pursued a dual-track policy that puts pressure on Iran to engage seriously in discussions with the international community on its nuclear program. To date, Iran has failed to take advantage of the offer of engagement described in EU High Representative Ashton's October 2011 letter. Instead, Iran has refused to address the international community's serious and well-founded concerns about its nuclear program. These concerns have only been heightened by Iran's inability to explain how its nuclear program is, as it claims, exclusively peaceful in nature or to provide any credible response to the IAEA's November 2011 report that detailed the potential military dimensions of Iran's nuclear program.
Remarks by Secretary of State Clinton and EU High Representative Ashton, February 17, 2012Footnote 3
Secretary Hillary Clinton and Representative Catherine Ashton gave the following remarks in Washington, DC
Introductory Remarks Omitted
Secretary Clinton. I will turn first to Iran. We're very grateful to Lady Ashton for her leadership on the P-5+1. The international community has been looking to Iran to demonstrate it is prepared to come to the table in a serious and constructive way. We have been reviewing Iran's proposal to resume talks on its nuclear activities and consulting closely between us and with our other P-5+1 partners. This response from the Iranian Government is one we've been waiting for, and if we do proceed, it will have to be a sustained effort that can produce results.
Turning to Syria, I know that the high representative joins me in, once again, condemning in the strongest possible terms the ongoing violence against the Syrian people perpetrated by the Assad regime. I also want to extend on behalf of myself and our government our sympathies to the family of Anthony Shadid and to the New York Times for his untimely death. He was somebody I always turned to and read very carefully, and if I didn't have the time when I got to the press reporting, I would put it aside and read it because he had his pulse on what was happening.
Yesterday's UN General Assembly vote demonstrated an overwhelming international consensus that the bloody assaults must end. In the face of this global condemnation, the regime in Damascus, however, appears to be escalating its assaults on civilians, and those who are suffering cannot get access to the humanitarian assistance they need and deserve. So we will keep working to pressure and isolate the regime, to support the opposition, and to provide relief to the people of Syria. I will be attending the Friends of Syria conference in Tunisia next week, where a number of nations will work to intensify pressure on the regime and to mobilize the humanitarian relief that is needed. We also hope to coordinate efforts to enable a Syrian-led transition before the regime's actions tear the country apart. We're looking for an inclusive democratic process.
Ultimately, our shared values between the U.S. and the EU are the bedrock of our cooperation, and we are promoting those values together. We also discussed the situation in the Balkans. We share the view that the future of both Serbia and Kosovo lies with the European Union, and the United States strongly supports the dialogue that the EU is leading to try to advance Euro-integration for both Serbia and Kosovo. Deputy Secretary Burns is encouraging both sides to remain flexible and open to compromise.
We have a—we have a very long list of what we discussed, but I'll just end it there and turn it over to Lady Ashton with my appreciation for her leadership and the great partnership we have.
Representative Ashton. Well first of all, can I say what a pleasure it is to be back here and to be meeting and working as closely as I do with you. It is extremely significant that we're meeting today, because we meet on the back of having received a letter from Dr. Jalili from Iran in response to my letter from October. As you said, we are consulting colleagues and analyzing closely what this letter would mean. Let me say that I think it's good to see that the letter has arrived and that there is a potential possibility that Iran may be ready to start talks. We'll continue to discuss and make sure that what we're looking at is substantive, but I'm cautious and I'm optimistic at the same time for this. It also demonstrates the importance of the twin-track approach, that the pressure that we have put on together, the sanctions that have been put there because that's the responsibility of the international community, I believe, they're having an effect. But we, of course, want to resolve this through talks.
And as you've said, Hillary, the situation in Syria is a cause for enormous concern, and we feel extremely worried about the level of violence and terror that is happening within that country. We've been very clear that President Assad should stand aside and should enable a process that would bring the people of Syria together, all of them. An inclusive process that can take the country forward. I want to commend the work of Nabil Elaraby, the Secretary-General of the Arab League, who has shown great leadership in bringing together the Arab community, but in coordination, working closely with the international community, to demonstrate that inclusivity and to demonstrate the leadership on the ground. I hope that the meeting next week will give us a chance to consider how we can support humanitarian efforts especially. And I will be working with the UN, the OIC, and the Arab League, as we did through the situation in Libya, on the humanitarian side of the challenges that we face. I hope it will also show, too, the international consensus to try and see the situation in Syria end.
As you said, there are hundreds of things on our agendas at all times, and we keep in constant touch, so we can deal with only some of them at every meeting. The situation in Serbia-Kosovo, of course, is very important to the European Union because we do believe, as you rightly say, the future for both lies within the European Union. The team that we've got there at the moment are working closely together to try and support both into their future. I hope that both will be able to work on the plan that we've put to them that will enable Serbia to become a candidate, will enable Kosovo to move forward with visas, with trade, with economic support, and eventually to see its future as well with the European Union. Thank you.
Ms. Nuland. We have time for two today. We'll start with The New York Times, Steve Myers.
Q. Madam Secretary, Lady Ashton, thank you. The Iranian letter refers to a readiness for dialogue, talks at the earliest possibility, and also, significantly, no preconditions in it for those talks. And yet you seem somewhat hesitant to embrace this. Is that that you think the letter is not sincere? And what more do you need to see before you could begin, or what next steps could you see for those talks to begin? Thank you.
Secretary Clinton. Well, first, as I think we both have said, we are evaluating the response. And our unity within the P-5+1 has been absolutely critical in dealing with Iran in the past. It remains so going forward. It takes time to consult and to do so in a thorough manner. So we need to give time to our partners in the P-5+1 process to do their own evaluation.
But we've been clear about two things that I want to stress. First, as outlined in Cathy's October letter to Iran, any conversation with Iran has to begin with a discussion of its nuclear program. And Iran's response to Cathy's letter does appear to acknowledge and accept that. And second, we must be assured that if we make a decision to go forward, we see a sustained effort by Iran to come to the table, to work until we have reached an outcome that has Iran coming back into compliance with their international obligations.
So we're evaluating all of these factors. But I think it's fair to say—and of course, I'll let Cathy speak for herself—that we think this is an important step, and we welcome the letter.
Ms. Ashton. Yeah. I mean, exactly. We see the things that you've seen in the letter—no preconditions and a recognition of what we'll be talking about. The next question, really, is to look at then where we left off in Istanbul. And you'll recall that we put out in Istanbul a series of options for confidence-building measures, things that Iran could do that would help us move forward with the talks, things that the inspectors would be allowed to do, for example. We also said at that time they could come forward with their own ideas about what they wanted to do, so that this was a genuine open process.
So for us, the evaluation now is also about thinking through okay, where did we leave off, where do we need to go next? If we start the talks, we want to sustain them. Therefore, we need to set in train the process whereby we can be clear what it is we mean to achieve and what we're expecting from the Iranians. And that's what we're in the process of doing right now.
Q. Is the TRR still on the table?
Ms. Ashton. Well, when we were talking in Istanbul, there were two sets of issues: one, the confidence-building measures I've described; the other was support for the TRR and for, of course, a civil nuclear program. And that's been—as I've acknowledged to the Iranians recently, that's always been part of what we were offering, was to support them on civil nuclear power.
Ms. Nuland. And last question, ITN (inaudible).
Q. Yeah. Robert Moore with the British network ITN. Good morning. A question to you both, if I may. I wonder what your message is today to the embattled residents of Homs and other Syrian cities. Would it not be more honest and therefore more honorable to say you're on your own, the UN Security Council is paralyzed, there are no good Western diplomatic options, don't expect our help?
Ms. Ashton. I'm not sure that would be an honest response. I think the honest response is to say this: We are absolutely clear that President Assad should stand aside; you cannot kill your own people, you cannot be a leader, and call this leadership. Secondly, that we want to try and work as close as we can with everyone who's willing to engage in support of the humanitarian needs of people. And we've supported the Arab League in its quest to try and put people on the ground to try and monitor the situation. And as you know, there are discussions going on between the UN and the Arab League about how to take that forward in the future. The honest response is we need to do everything that we possibly can to help.
Secretary Clinton. I think that's absolutely right. We have marshaled the great weight of international opinion against the Assad regime. The vote yesterday in the General Assembly was overwhelming. So I do want the people of Syria to understand and believe that there are tens of millions of people around the world who are seized with the terrible situation they find themselves in.
And we have not been deterred by the vetoes in the Security Council. We are moving forward with the Friends of Syria. They are not being abandoned. We are doing all we can to determine ways forward to strengthen the opposition, to help them convey to the entire Syrian population that they are seeking an inclusive, peaceful, democratic transition, and that those who are fearful of the future, which is understandable, whether they be Alawites, Sunni, Christian, Druze, Kurd or any Syrian, have to come together to establish a credible opposition that can then serve as their voice in dealing with the regime and dealing with the outside.
So, I think we have to be humble. I mean, this takes a large dose of humility to say we don't have all the answers and we cannot even imagine the terrible experiences that people are going through with their children and their grandparents under such assault, but we're doing whatever we can to try to help pave the way toward a better future for Syria.
Thank you all very much. Have a good weekend.
Statement by Under Secretary Cohen, March 15, 2012Footnote 4
Under Secretary of the Treasury David Cohen gave the following statement in Washington, DC
Under Secretary Cohen. The United States welcomes today's action by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to terminate services for designated Iranian banks, which we understand includes the Central Bank of Iran. We commend the EU for directing that no specialized financial messaging services can be provided by any entity in the EU for sanctioned Iranian entities and for the prompt response by the Belgian Treasury and SWIFT to the EU's action.
Today's decision reflects the growing international consensus that substantially increased pressure is needed to convince the Iranian regime to address the international community's concerns about its illicit nuclear activities. Taken in the context of increasingly powerful sanctions applied by the United States, the EU, and many others in the international community, today's action reinforces the isolation of designated Iranian banks from the international financial sector.
The United States will continue to work closely with our European and other partners in the international community to increase further the pressure on Iran and to strengthen the impact of our sanctions.”
