Prohibiting Transactions With Foreign Sanctions Evaders (Iran/Syria)

May 3, 2012

Summary

Stops foreign people and companies from helping Iran and Syria get around U.S. money rules and blocks them from entering the country.

What problem does this solve?

Foreign individuals and companies were helping Iran and Syria avoid U.S. economic punishments, which weakened the effect of those sanctions. This order gives the government power to punish those helpers by blocking their money and stopping them from coming into the U.S.

What does this order do?

Authorizes punishments for sanction evaders

Gives the Secretary of the Treasury the power to ban all business dealings with any foreign person who helps Iran or Syria avoid U.S. sanctions.

Blocks entry into the United States

Stops any foreign person found to be helping Iran or Syria evade sanctions from entering the U.S. as a visitor or immigrant.

Defines sanction evasion activities

Identifies evasion as violating sanction rules, helping with sneaky money deals, or being owned by someone who violates the rules.

Prohibits donations

Bans making or receiving donations of items like food and medicine to or from anyone punished under this order.

Allows for no prior notice

Lets the government act against a person without warning to prevent them from moving their money or property first.

Who does this affect?

Foreign individuals and companies
Governments of Iran and Syria
U.S. financial institutions

What is the real world impact?

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Strengthens existing sanctions

Makes it harder for Iran and Syria to ignore U.S. economic rules by punishing foreign helpers. This increases pressure on those countries to change their behavior.

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Extends U.S. financial power globally

Applies U.S. rules to foreign individuals and companies, even for actions outside the U.S. This could cause issues with other countries who may see it as an overreach of authority.

When does this start?

This order became effective on May 1, 2012.