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U.S. sanctions Iran Central Bank subsidiary for U.S. tech procurement and violating export rules

The U.S. has imposed sanctions on three people and four firms — across Iran, the United Arab Emirates and Turkey — for allegedly helping to export goods and technology purchased from U.S. companies to Iran and the nation’s central bank

Fatima Hussein
Wednesday 14 February 2024 20:04 GMT
Treasury Investment Rules
Treasury Investment Rules (Copyright 2023 The Associated Press. All rights reserved.)

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The U.S. on Wednesday imposed sanctions on three people and four firms — across Iran, the United Arab Emirates and Turkey — for allegedly helping to export goods and technology purchased from U.S. companies to Iran and the nation's central bank.

Treasury’s Office of Foreign Assets Control said the procurement network transferred U.S. technology for use by Iran's Central Bank in violation of U.S. export restrictions and sanctions.

Some of the materials acquired by the Central Bank of Iran were items classified as “information security items subject to national security and anti-terrorism controls” by the Commerce Department, Treasury says.

Included in the sanctions package is Informatics Services Corp., an Iranian subsidiary of Iran's Central Bank that most recently developed the Central Bank Digital Currency platform for the bank; a UAE-based front company, which acquired U.S. tech for the Central Bank of Iran and the front company's CEO, as well as a Turkey-based affiliate firm that also made purchases that ended up in Iran.

“The Central Bank of Iran has played a critical role in providing financial support to" Iran's Islamic Revolutionary Guard and militant group Hezbollah, said Treasury Under Secretary Brian E. Nelson, adding that they are the "two key actors intent on further destabilizing the Middle East.”

“The United States will continue to use all available means to disrupt the Iranian regime’s illicit attempts to procure sensitive U.S. technology and critical inputs," he said.

The sanctions block access to U.S. property and bank accounts and prevent the targeted people and companies from doing business with Americans.

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