Iran uses Ecuador as front to avoid bank sanctions

Counterterrorism Blog:

In its latest bid to avoid international banking sanctions, Iran has reached an agreement with the Central Bank of Ecuador to allow the Export Development Bank of Iran to operate in this Andean nation.

The move came even though Ecuador is fully aware that EDBI is under U.S. Treasury Department sanction for illicitly providing or attempting to provide financial services to Iran's Ministry of Defense and Armed Forces Logistics (MODAFL).

According to the Treasury Department's designation statement:

"In response to international sanctions and the refusal of many responsible banks to do business with Iranian banks, Iran has adopted a strategy of using less prominent institutions, such as the Export Development Bank of Iran, to handle its illicit transactions." said Under Secretary for Terrorism and Financial Intelligence Stuart Levey. "Today's action exposes EDBI's role in helping Iran violate UN sanctions so that financial institutions around the world can take appropriate steps to protect themselves."

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There is more. Ecuador has been acting like a hostile power and should be treated as such. It risk having its own banking transactions restricted. This is the country that is also attempting to steal money from Chevron through a bogus legal case where the judge as recently removed himself after being caught telling others he had prejudged the results. If Ecuador wants to associate with rogue states it should be treated as one.