Banks pay for dealing with Iran

Washington Post:

The United States on Wednesday escalated a crackdown on illicit banking relations with Iran, winning a half-billion-dollar fine against the biggest Swiss bank as other European financial institutions remain under investigation.

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The agreement by Credit Suisse Group to pay $536 million to settle a Justice Department investigation comes on the heels of forfeitures of $350 million by Lloyds TSB Bank earlier this year and $80 million by ABN Amro Holding in 2005 for similar violations of U.S. sanctions. Another British bank, Barclays, has acknowledged it is cooperating with the probe and faces a substantial fine; at least another half-dozen banks are believed to be under investigation.

Credit Suisse admitted to helping banks in a rogue's gallery of nations -- including Iran, Sudan, Burma, Cuba and Libya -- evade sanctions by disguising the identity of suspect companies making dollar-denominated money transfers that totaled more than $1.6 billion. But Iran -- which faces the threat of fresh sanctions next year over its nuclear program -- clearly was the main target of the action announced by U.S. officials in Washington and Manhattan prosecutors.

"This case also provides a critical and timely lesson about the Iranian government's use of deceptive practices to evade sanctions and the fact that banks that do business with Iran expose themselves to the risk of becoming involved in Iran's proliferation and terrorism activities," said Stuart Levey, a Treasury Department undersecretary and the administration's point man in developing new sanctions against the Islamic Republic. "Sometimes Iran is able to persuade banks to assist in its deceptive schemes; other times banks find themselves unwitting victims of this nefarious conduct."

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Iran has been devious in its attempts to avoid sanctions and arms embargoes. It is another reason why I am skeptical of them abiding y any nuclear limitation agreement, if they do sign one.

The case continues to be made for increased sanctions, but I remain doubtful that any will be effective. Iran's South American allies like Venezuela and Ecuador are going to launder money and goods for them.

We need to be prepared for the use of force and we need to support the Iranians who oppose this religious bigots in charge of Iran.