September 20, 2019

OFAC designates Central Bank of Iran in relation to support for terrorism

The Office of Foreign Assets Control of the US Department of the Treasury has designated the Central Bank of Iran (CBI), the National Development Fund of Iran (NDF), and Etemad Tejarate Pars Co. pursuant to Executive Order 13224 for supporting the Islamic Revolutionary Guards Corps (IRGC), the Qods Force of the IRGC (IRGC-QF), the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL), and Hizballah.  

As Iran’s sovereign wealth fund, the NDF was established to serve the welfare of the Iranian people by allocating oil and gas revenues to durable wealth and productive economic investments; its board of trustees include the president of Iran, the governor of the Central Bank of Iran, and the Iranian oil minister.  According to OFAC, over the past years the NDF has transferred hundreds of millions of dollars in cash disbursements to the IRGC-QF, with the CBI facilitating these transfers, and coordinating with the IRGC-QF to transfer funds to Hizballah.

Following these designations, all US property of the designated entities is blocked, and US persons are generally prohibited from dealing with blocked or designated persons.  Foreign financial institutions that knowingly facilitate a significant financial transaction to designated entities could be subject to US correspondent account or payable-through sanctions.

US Dept. of the Treasury press release