Authorizing Additional Sanctions With Respect to Iran
Aug 2, 2012
Signed by: Barack Obama
Signed on: Jul 30, 2012
Published on: Aug 2, 2012
Aug 2, 2012
Signed by: Barack Obama
Signed on: Jul 30, 2012
Published on: Aug 2, 2012
Summary
Creates new financial penalties for those who buy oil from Iran to stop the country from using that money for illegal purposes.
What problem does this solve?
The government of Iran was using money from selling oil for harmful activities and was finding ways to avoid international penalties. This order makes it harder for Iran to sell its oil and petrochemicals by punishing foreign banks and companies that help them.
What does this order do?
Penalizes foreign banks dealing with Iran's oil
Allows the Secretary of the Treasury to punish foreign banks that handle significant money deals with Iran's national oil companies or for the purchase of Iranian oil and petrochemicals.
Punishes companies buying Iranian oil
Allows the Secretary of State to place penalties on any person or company that knowingly makes a large purchase of petroleum or petrochemicals from Iran.
Blocks property of those supporting Iran's government
Freezes all U.S.-based property and money of any person found helping Iran's national oil companies, its Central Bank, or helping the government buy U.S. money or precious metals.
Exempts humanitarian aid
Ensures that penalties do not apply to transactions for selling food, medicine, or medical devices to Iran.
Prohibits trying to get around the rules
Makes it illegal to try to evade or avoid the penalties set forth in this order, or to plan with others to violate them.
Exempts specific natural gas project
States that the penalties will not apply to people or companies involved in a natural gas pipeline project from Azerbaijan to Europe and Turkey that started before this order.
Who does this affect?
- Foreign financial institutions
- Companies in the global energy market
- The Government of Iran
What is the real world impact?
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Cuts off funding for Iran's government
Aims to stop Iran from using money from its oil sales to fund activities that threaten global security. This prevents the government from using its main source of income for dangerous purposes.
When does this start?
The rules in this order went into effect on July 31, 2012.