Further Expansion of U.S. Sanctions against Iran

24 January 2013
Download PDF

Key takeaways:

The United States continues to seek to isolate Iran from global commerce. Earlier this month, President Obama signed into law the fourth new U.S. sanctions law against Iran in the last three years, and the Treasury Department's Office of Foreign Assets Control issued an advisory to U.S. financial institutions cautioning them on Iran's activities. 

  • The new law -- the Iran Freedom and Counter-Proliferation Act of 2012 -- targets Iran's energy, shipping, shipbuilding and precious metals sectors and, like past Iran sanctions laws, applies extra-territorially.
  • The new law also sanctions those who provide underwriting, insurance or reinsurance services for an activity with respect to Iran that is prohibited under U.S. law.
  • The new advisory alerts U.S. financial institutions of certain activities that Iranian institutions are conducting to avoid international sanctions regimes and suggests the adoption of enhanced due diligence as a counter-measure.