US targets Iran's central bank as world takes aim at Iran's nuclear program
| Washington
The United States on Monday took steps targeting Iran鈥檚 central bank and its energy sector, acting just days after the United Nations鈥� nuclear watchdog expressed 鈥渄eep concern鈥� about the military applications it has detected in Iran鈥檚 nuclear program.
The Obama administration announced it was naming Iran鈥檚 central bank a 鈥減rimary money laundering concern鈥� amid mounting international pressure against Iran.
Also Monday, Britain announced it was cutting all British ties with Iranian banks, including the central bank, while Canada announced similar action. And French President Nicolas Sarkozy sent a letter to Western leaders, including President Obama, recommending an immediate freeze on the assets of Iran鈥檚 central bank.
Mr. Obama said in a statement that Iran was causing its own isolation by pursuing its current path, and he hinted that more pressure is on tap unless Tehran backs off its course.
鈥淚ran has chosen the path of international isolation,鈥� Obama said. 鈥淎s long as Iran continues down this dangerous path, the US will continue to find ways, both in concert with our partners and through our own actions, to isolate and increase the pressure upon the Iranian regime.鈥�
The US action taken Monday does not formally sanction Iran鈥檚 central bank, also called Bank Markazi, but the 鈥渕oney laundering鈥� designation is expected to entail serious impact on its operations.
Similar steps taken in the past against North Korean and Lebanese banks caused other countries and international businesses to sever ties, and US officials are clearly hoping for a similar impact in the case of Iran.
The US also announced sanctions on a list of companies it says are involved in supporting Iran鈥檚 nuclear program, and new measures targeting Iran鈥檚 production and sales of petrochemicals and oil exports.
Secretary of State Hillary Rodham Clinton called the measures 鈥渁 significant ratcheting up of pressure on Iran.鈥�
The administration鈥檚 action, announced jointly by Secretary Clinton and Treasury Secretary Timothy Geithner, comes as Congress moves forward on its own measures aimed at Iran鈥檚 central bank.
US officials said the decision to name Iran鈥檚 central bank for money laundering, while stopping short of sanctioning the bank directly, was part of an effort to allow foreign governments and companies still doing business with Iran to prepare now for more draconian measures expected in coming weeks.
Officals say the money laundering designation was justified by the central bank鈥檚 involvement in transactions in support of terrorism, and for its continuing work on behalf of other Iranian banks that have been sanctioned by the US and others for financing aspects of Iran鈥檚 nuclear program.
Some members of Congress expressed support for the administration鈥檚 actions, while characterizing them as only a first step toward sanctioning Iran鈥檚 central bank.
鈥淭he sanctions announced today reflect a deepening consensus and resolve 鈥� among Republicans and Democrats in Washington, and among the US and its allies around the world 鈥� that it is time to target the Central Bank of Iran,鈥� Sen. Joe Lieberman (I) of Connecticut said in a statement following the administration鈥檚 announcement.
Calling Monday鈥檚 action 鈥渁n important step toward this goal,鈥� Senator Lieberman said it should be 鈥渙nly the first step,鈥� and he added that 鈥渕uch more needs to be done, and quickly.鈥�
Lieberman noted the seriousness of sanctioning Iran鈥檚 central bank, but he suggested it might be one of the last steps for avoiding military action against Iran鈥檚 nuclear facilities.
鈥淭argeting the Central Bank of Iran is one of the last arrows in the sanctions quiver before military action must be considered,鈥� Lieberman said.聽 鈥淭oday's announcement indicates that the arrow [targeting the central bank] should soon be loosed.鈥�
The administration concurs that Monday鈥檚 actions may be a first step down the road to formally sanctioning Iran鈥檚 central bank, but officials insist that much remains for the US and its partners to undertake in the way of pressuring Iran before military action is considered.
