Sanctions in the Iran Freedom and Counter-Proliferation Act of 2012

Jun 5, 2013

Summary

Puts in place more money-related punishments against Iran and any person or company that helps them, especially with their car industry or currency.

What problem does this solve?

The United States considers Iran's actions a threat to national security. This order adds more financial punishments to pressure Iran to change its behavior by targeting its money and key industries.

What does this order do?

Sanctions on Iranian currency transactions

Authorizes punishments for foreign banks that knowingly handle large transactions involving the Iranian rial or hold significant amounts of rials outside of Iran.

Blocks property of those supporting sanctioned Iranians

Freezes all U.S.-based property and assets of any person or company found to have provided significant support or services to any Iranian person already on the sanctions list.

Targets Iran's automotive sector

Allows sanctions against foreign banks that process major financial transactions for the sale of goods or services to Iran's automotive industry.

Suspends U.S. entry for sanctioned individuals

Bans any person targeted by these sanctions from entering the United States, either as an immigrant or for a temporary visit.

Punishes corruption related to humanitarian goods

Blocks the U.S. property of anyone involved in corruption or stealing goods like food and medicine that were meant for the people of Iran.

Expands existing petroleum sanctions

Amends a previous executive order to include sanctions on the sale, transport, and marketing of Iranian petroleum and petrochemical products, not just their purchase.

Who does this affect?

Government of Iran
Foreign financial institutions and companies
Iranian citizens and officials

What is the real world impact?

•

Increases economic pressure on Iran

Applies broad financial penalties to discourage Iran's government from pursuing activities the U.S. considers a threat. This isolates Iran from the global financial system, making it harder for them to fund their programs.

•

Discourages international business with Iran

Punishes foreign companies and banks that do business with Iran, especially in its automotive and energy sectors. This forces international partners to choose between doing business with Iran or the United States.

When does this start?

This order becomes effective at 12:01 a.m. eastern daylight time on July 1, 2013.