Imposing Sanctions With Respect to Additional Sectors of Iran
This executive order expands and tightens U.S. sanctions on Iran by broadening the sectors of Iran’s economy that trigger blocking and financial restrictions. Specifically, it authorizes the Treasury, with State Department input, to block the property of individuals connected to Iran’s construction, mining, manufacturing, textiles sectors (and any other sectors the Treasury designates), and to sanction foreign financial institutions for significant Iran-related transactions tied to those sectors or to blocked persons. It also strengthens restrictions on entry to the United States for designated individuals, prohibits certain donations to blocked entities, and empowers the Treasury to implement rules to carry out these measures. A key humanitarian carve-out is preserved for agricultural commodities, food, medicine, and medical devices. Overall, the order aims to cut off revenue and financial support for Iran by targeting additional sectors of its economy and the foreign banks that facilitate Iran-related activity, while permitting limited humanitarian transactions and maintaining the authority of U.S. agencies to implement and enforce these sanctions.
Key Points
- 1Expansion of blocked sectors: The order blocks property of persons involved in Iran’s construction, mining, manufacturing, or textiles sectors, or any other sector designated later by the Treasury in consultation with the State Department; it also blocks those who knowingly engage in significant Iran-related transactions tied to these sectors or to blocked persons.
- 2Financial sanctions on foreign banks: Treasury, with State input, may sanction foreign financial institutions that knowingly facilitate significant Iran-related transactions connected to the newly designated sectors or blocked persons. This can include prohibiting opening or maintaining correspondent accounts or payable-through accounts in the United States.
- 3Immigration and travel restrictions: The order authorizes suspending the entry of aliens who meet the criteria related to these designated sectors, with waivers if entry would not be in U.S. interests or would support law enforcement objectives, and it places implementation in consultation with the Secretary of State and the Department of Homeland Security.
- 4Prohibitions on donations and support: The order prohibits donations or provision of funds, goods, or services to or from blocked persons, and also prohibits any attempt to circumvent these prohibitions.
- 5Humanitarian carve-out and implementation: The order preserves a specific exemption for the provision of agricultural commodities, food, medicine, or medical devices to Iran, and it designates that the measures be implemented by the Treasury in coordination with other agencies, with authorities to issue implementing rules and regulations.