The U.S. Treasury Department imposed sanctions on the Central Bank of Iran, citing counterterrorism concerns amid talk of escalating Washington action over recent attacks on crucial oil production facilities in Saudi Arabia.
It is also imposing sanctions on Iran's National Development Fund and Etemad Tejarate Pars Co. per Executive Order 13224, which is the Treasury's counterterrorism mandate.
The Treasury said Iran's central bank has provided billions of dollars to the Islamic Revolutionary Guards Corps, its specialized Qods Force, and alleged terrorist proxy Hizballah.
As a result of the Treasury Department's actions, all property and interests in property of the targeted financial institutions that are in the U.S. or in the possession or control of U.S. citizens will be blocked and reported to the department's Office of Foreign Assets Control. Individuals, institutions and companies based in the U.S. are barred from transacting with Iran's central bank, sovereign wealth fund and Etemad Tejarate Pars and will similarly risk sanctions from the U.S. government.
The National Development Fund, Iran's sovereign wealth fund, has been a major source of foreign currency and funding for the Revolutionary Guards, as well as the country's defense and military logistics ministry, the Treasury said.
The Treasury believes Iran is using Etemad Tejarate Pars as a proxy for its military purchases, which are covered by existing sanctions.
"The United States will continue its maximum pressure campaign against Iran's repressive regime, which attempts to achieve its revolutionary agenda through regional aggression while squandering the country's oil proceeds," said Treasury Secretary Steven Mnuchin.
Treasury Undersecretary for Terrorism and Financial Intelligence Sigal Mandelker said the U.S. will "vigorously" enforce sanctions against Iran's financial institutions, warning governments around the world "that they are risking the integrity of their financial systems by continuing to work with the Iranian regime" and calling the country's central bank Tehran's "terror finance" arm.
President Donald Trump earlier tweeted that he instructed the Treasury Department to "substantially increase" sanctions on Iran.
Iran has denied involvement in the attacks on Saudi Arabian Oil Co.'s Abqaiq and Khurais oil facilities and has reportedly warned the U.S. of "all-out war" in the event of military action against it.
