Lawmakers Seeking Veto-Proof Passage of Iran Sanctions Measure

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If passed, the Nuclear Weapon Free Iran Act would allow the White House to bar U.S.-based banks from maintaining correspondent and payable-through accounts for foreign financial institutions that knowingly process transactions in other currencies on behalf of designated Iranian institutions.

The measure, which would permit the sanctions should Iran fail meet deadlines on concessions that would roll back its nuclear program, would also impose new restrictions on the nation’s petroleum industry, ports, special economic zones and certain individuals.

Menendez said Tuesday that he and co-author Sen. Mark Kirk are working to refine the bill in hopes it “could be pursued at the earliest possible moment,” The Hill reported.

Whether the legislation would have an impact on bank compliance departments would depend on the Obama administration’s willingness to enforce the measures, said Emanuele Ottolenghi, a senior fellow at Foundation for Defense of Democracies, a Washington, D.C.-based think tank.

“The impact on financial institutions could be devastating and therefore the sanctions…will have a very quick and dramatic impact on Iran’s ability to transact any oil sales,” he said. “If the administration is not willing to play along with Congress and, on top of that, [if the] U.S. allies involved in negotiations will reject this measure, then the impact will be lessened.”
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