Blocking Property of the Government of Iran and Iranian Financial Institutions

Feb 8, 2012

Summary

Freezes all money and property of the Iranian government and its banks that are in the United States or held by U.S. persons.

What problem does this solve?

Iran's banks were hiding transactions and not following rules against money laundering, which created a risk for the world's financial system. This order freezes all property and money of the Iranian government and its banks in the U.S. to stop these harmful activities.

What does this order do?

Blocks all Iranian government property

Freezes all property and money of the Government of Iran, including its Central Bank, that is in the U.S. or controlled by a U.S. person.

Blocks all Iranian bank property

Freezes all property and money of any Iranian financial institution that is in the U.S. or controlled by a U.S. person.

Blocks property of those acting for Iran

Freezes the property of any person or company found to be owned, controlled by, or acting on behalf of the Iranian government or its banks.

Prohibits donations

Bans making or receiving donations of certain items to or from any person or group whose property is blocked by this order.

Forbids trying to avoid the rules

Makes it illegal for any U.S. person to try to get around, avoid, or violate the prohibitions in this order.

Who does this affect?

Government of Iran
Iranian financial institutions
U.S. persons and companies

What is the real world impact?

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Protects the international financial system

Prevents Iran from using its banks for tricky practices like hiding money for sanctioned groups, which is a risk to the world's financial system.

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Applies economic pressure on Iran

Uses money-related punishments to pressure the Iranian government. By freezing its money and property, the U.S. tries to stop Iran from funding activities that threaten security.

When does this start?

This order went into effect at 12:01 a.m. EST on February 6, 2012.