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Treasury’s Cohen Highlights Key Provision of New Iran Sanctions - Corruption Currents - WSJ

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Countries that receive waivers from U.S. sanctions because they reduced their oil imports from Iran will, as of Feb. 6, 2013, only be able to pay for crude using a bank within their own country, a U.S. Treasury Department official said.

David Cohen, undersecretary of Treasury for terrorism and financial intelligence, spoke Wednesday at a conference in Washington, telling attendees about a key provision of Iran sanctions signed into law this summer that targets Iran’s oil trade, saying it represents “perhaps the most dramatic escalation of financial pressure” on Tehran yet.

Under the provision, he said, any bank in a country that received a waiver can only avoid the sanctions if it uses a bank within its own borders, and only if the money is used to facilitate permitted trade between that country and Iran.