US Treasury to brief Israel on Iran pressure
Senior Treasury official to travel to region, discuss Obama Administration's latest moves
The US Treasury will send its top national security official to the United Arab Emirates and Israel this weekend to brief government officials on new US actions to increase financial pressure on Iran.
The Treasury said David Cohen, undersecretary for terrorism and financial intelligence, will discuss the Obama Administration's decision to declare Iran a jurisdiction of "primary money laundering concern" during the Nov. 26-29 trip.
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He also will discuss expanded sanctions to ban firms from aiding Iran's oil and petrochemical industries.
The actions were announced on Monday as part of a coordinated effort with Britain and Canada to increase pressure on Tehran in response to a Nov. 8 International Atomic Energy Agency report that presented intelligence suggesting that Iran had worked on designing a nuclear bomb and may still be secretly carrying out related research.
'Chilling effect'
The US decision to declare Iran as an area of "primary money laundering concern" under the USA Patriot Act is a step designed to dissuade non-US banks from dealing with Iran. It stopped short of blacklisting Iran's central bank, but brands Iran's banking sector as posing unacceptable risks of terrorist financing, weapons proliferation and money laundering.
"Our action, along with those taken by the UK and Canada, should have a chilling effect on the willingness of foreign financial institutions to do business with Iranian banking institutions," Cohen said in a blog posting on the US Treasury website.
"Foreign banks in jurisdictions where there may not be comprehensive sanctions on Iran are now much more likely to make the judgment that Iran is an increasingly risky place to do business," he added.
Prime Minister Benjamin Netanyahu on Wednesday called for "even tougher" sanctions than those announced by the United States, Britain and Canada. He did not elaborate on what steps should be taken.
The US Treasury said Cohen also will consult with senior UAE and Israeli officials on options that the United States is exploring to boost pressure further on Iran, including possible financial measures targeting Iran's central bank.
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