AJC Applauds British Decision to Sanction Iran's Central Bank

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Nov 21, 2011, 01:04 ET

NEW YORK, Nov. 21, 2011 /PRNewswire-USNewswire/ -- AJC praised the British government for its decision today to terminate all dealings with the Central Bank of Iran. The ban covers all Iranian banks, branches and subsidiaries, and is part of the latest round of global sanctions against Iran.

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"England's bold initiative to single out the Central Bank of Iran is a much-needed punitive measure to press Iran to stop its nuclear weapons program," said AJC Executive David Harris. "We hope other countries will quickly follow the British lead to enhance the measure's effectiveness. Iran's defiance of the international will must be countered with the strongest possible coordinated efforts to defeat this clear threat to global security."

The British government announcement comes after the IAEA board, meeting in Vienna last Friday, omitted any punitive measures in a resolution that criticized Iran for its nuclear program and unwillingness to cooperate with the UN and IAEA. A comprehensive IAEA report, issued November 8, confirmed that Iran has made substantial progress towards building a nuclear weapon.

"This measure will protect the U.K. financial sector from being unknowingly used by Iranian banks for proliferation related transactions," said George Osborne, Britain's treasury chief. Iran's nuclear activities "pose a significant risk to the national interests of the UK and countries across the region."

Additional American and Canadian sanctions against Iran's financial sector also are expected today. The U.S. Treasury Department is slated to designate Iran as a territory of "primary money laundering concern." While U.S. companies and individuals already are barred from doing business with Iran, the new Treasury designation would caution foreign governments and businesses on their dealings with Iranian financial institutions.

"Tightening the noose around Iran's economy is essential to ending Iran's nuclear program, though ultimately full impact requires the cooperation of China, Russia and other countries that mistakenly continue to do business as usual with Iran," said Harris.

SOURCE American Jewish Committee