US Moves To Cut Off Iran From Global Economy

Six years after SWIFT cut ties with Iranian banks during the last round of Western sanctions on the Persian nation, on Thursday afternoon the U.S. took another step toward cutting Iran off from the global economy when the US Treasury announced it was levying sanctions on a financing network and accusing the country’s central bank of helping funnel U.S. dollars to the blacklisted elite military unit of the Iranian Revolutionary Guard known as the Quds Force, the WSJ reported.

Acting together with the United Arab Emirates, the US Treasury said that it had sanctioned six individuals and three "front companies engaged in a large-scale currency exchange network that has procured and transferred hundreds of millions" of dollars to Iran's elite military force; overnight Israel’s government blamed the the same Quds Force for rocket attacks from Syria Wednesday night, an action that triggered massive retaliatory strikes by Israel’s military against Iranian targets in Syria, escalating the risk of a wider regional war.

In Washington, Treasury Secretary Steven T. Mnuchin accused "the Iranian regime and its Central Bank" of misusing banking access in the UAE to acquire US dollars to fund the IRGC-QF's "malign activities, and to arm its "regional proxy groups." The new sanctions also ban US individuals and entities from doing business with the currency network.

Mnuchin alleged that the sanctioned entities had concealed the acquisition of funds and transfers: "We are intent on cutting off IRGC revenue streams wherever their source and whatever their destination."

“Countries around the world must be vigilant against Iran’s efforts to exploit their financial institutions to exchange currency and fund nefarious actions of the IRGC-QF and the world’s largest state sponsor of terror,” Mnuchin also said.

Specifically, the Treasury accused an Iranian company, Jenah Aras Kish, of being a front for the Quds Force, and said the firm received oil revenues from Central Bank of Iran accounts and gave that money to couriers who exchanged it for millions of U.S. dollar notes in the U.A.E. through two Iranian firms, Khedmati & Co. and Rashed Exchange.

That cash was then taken back to the Quds Force and distributed to Iran’s regional proxies, the U.S. said. To hide the activities from U.A.E. authorities, the Treasury Department said the network used forged documents.

Washington has repeatedly accused the Iran Revolutionary Guard of backing terrorist groups and militias affiliated with Iran, including in Lebanon and Syria where missile warfare involving Israel and allegedly Al Quds unfolded on Thursday.

In February 2015, Reuters reported that at least $1 billion in cash had been smuggled into Iran despite US and other sanctions. In that case, the cash passed through money changers and front companies in Dubai, in the UAE, and Iraq. As we further reported in December 2015, the smuggling ring used gold as the key commodity used to bypass borders and monetary barriers, as well as middlemen in Turkey and the UAE where the chain of accountability led to the very top echelons of government in both nations.

The Treasury also accused Iran's central bank of being "complicit" in supplying the IRGC. 

“The Central Bank of Iran is complicit with the Quds Force for use by its proxies—that should send a very powerful message,” Sigal Mandelker, Treasury’s under secretary for terrorism and financial intelligence, said in an interview. “We’re going to use all of our authorities to disrupt these networks.”

Thursday's actions foreshadow the return of U.S. economic penalties as Washington reimposes sanctions that had been lifted as part of the 2015 nuclear agreement. Iran’s central bank wasn’t formally sanctioned in Thursday’s actions, but will be in the coming months, at which point the entire nations will once again be blacklisted by SWIFT, making USD-based international transactions impossible.

And while Thursday’s action targets only one network, it is a model of how the administration plans to implement a complete ban on dealings with the Central Bank of Iran and dollar transactions coming due in the months ahead.

Incidentally, this time around, SWIFT may not need to even get involved. “There are secondary sanctions consequences for doing business with these entities,” said the Treasury’s under secretary for terrorism and financial intelligence, Sigal Mandelker, referring to the currency-exchange network. Secondary sanctions are actions against companies that interact with blacklisted entities.

Because of Trump’s decision to reimpose broad U.S. sanctions, the use of U.S. dollar banknotes by Iran is banned after August, “and you can expect that we’re going to take that authority very seriously,” she said. “Foreign financial institutions, governments all over the world need to be on high alert to make sure that they understand the pattern and practice that these networks use to try to gain access to the USD.”

* * *

Meanwhile, western governments and companies - many of whom disagreed with Trump's withdrawing from the nuclear deal, have been trying to figure out how aggressively Washington plans to enforce its new sanctions regime against Iran, "wary of Treasury sanctioning European bank and firms, for example, if they continue to do business with Iran beyond deadlines for compliance approaching over the next six months."

For now, European officials have said they plan to stay in the nuclear deal with Iran, which may not only give license to their companies to maintain ties to Iran, but also may be setting up a diplomatic rift between the U.S. and its closest allies.

However, if and when the US imposes a few multi-billion fines on European banks, any willingness the EU has to bypass Trump's sanctions will promptly evaporate. Furthermore, Europe "doesn’t have the power to take important decisions," said Alaeddin Boroujerdi, head of the Iranian parliament’s nation security and foreign policy committee. The "Europeans, by sanctioning Iran, seek to dance in front of the Americans."

As a result, it's only a matter of time before Iran finds itself locked out financially from the world.

Or rather the Western world, because as the US and Europe fade away as key partners for Iran, China is about to step in again.

As Bloomberg reported today, "to develop its $430 billion economy, Iran is being forced to rely on political allies in the east. Trade with China has more than doubled since 2006, to $28 billion. The biggest chunk of Iran’s oil exports go to China, about $11 billion a year at current prices."

China is “already the winner,’’ Dina Esfandiary, a fellow at the Centre for Science and Security Studies at King’s College in London, told Bloomberg. "Iran has slowly abandoned the idea of being open to the West. The Chinese have been in Iran for the past 30 years. They have the contacts, the guys on the ground, the links to the local banks.’"

And they’re more willing to defy U.S. pressure as Trump slaps sanctions back on.

In short, the more Trump pushes Iran - and the broader middle-eastern region - to comply with the will of Israel and Saudi Arabia, the closer Iran will get with China whose influence in the middle-east, where it is ideologically aligned with Russia, will only grow...


Winston Churchill Pearson365 Thu, 05/10/2018 - 22:09 Permalink

Not watching the CIPS news this week I see.

In other news China Japan and both Korea's are setting up a free trade zone.

Petroyuan daily contracts are doubling every month as are yuan bonds owned by foreigners .

BRI trade now exceeds $1.4 trn pa.projected to double every year for the next three years and the infrastructure

isn't even built yet.

If you still think a trade war worries the Chinese you aren't paying attention.They were planning on it.

In reply to by Pearson365

SeaMonkeys Winston Churchill Thu, 05/10/2018 - 22:27 Permalink

Winston Churchill - you make a fantastic comment. The threat to the petrodollar regime is what all this is about. The U.S. should join in China's BRI and engage in productive economic activity that will make all prosper. Instead, we play defense, as England did going into WW1.

What fools we are. BRI is China's version of the Marshall Plan. Who wouldn't want to be a part of something grand like that? The swamp thickens.

In reply to by Winston Churchill

bshirley1968 FBaggins Fri, 05/11/2018 - 07:35 Permalink

Key to this article was completely overlooked.

Sigal Mandelker

This is the kind of "tribe" member that does the greatest damage and has the most influence. The ones that operate just below the media presence.

A former Israeli now in a key policy, financial position to make decisions and influence decisions that directly affect Israel at the expense of the people of the US.

Appointed by, guess who? The same guy that appointed her Jewish boss to be the Treasury Secretary.

Yet you could never convince people there is a "problem" here.

Check out this Kool-aid pushing bitch. Notice the very last line.....after all the Holocaust pandering at the beginning.

In reply to by FBaggins

PrayingMantis Pearson365 Thu, 05/10/2018 - 22:09 Permalink


... “ ... Only 4 Countries Left Without a ROTHSCHILD Central Bank ... “ ... >>> ... 


... guess which ones ...


... “... In the year of 2000 there were eight countries without a Rothschild owned or controlled Central Bank:

  1. Afghanistan
  2. Iraq
  3. Sudan
  4. Libya
  5. Cuba
  6. North Korea
  7. Iran
  8. Syria 

It is not a coincidence that these countries which are listed above were and are still being under attack by the western media, [edit: and the Western MIC], since one of the main reasons these countries have been under attack in the first place is because they do not have a Rothschild owned Central Bank yet. .. “ ...


In reply to by Pearson365

J S Bach DingleBarryObummer Thu, 05/10/2018 - 21:45 Permalink

The U.S. did the same thing to Japan in the 1930s.  They embargoed their oil and other raw materials thus goading them into war.  They had no choice but to lash out or else watch their economy and population starve.  Now they're trying the same dishonorable technique against all of the nations who refuse to allow Rothschild central banks to insidiously rule them.  Iran is next on their list.  Hopefully, the Persians will be impervious to this and rely on Russia and China for trade to thwart the evil plans of the usurers.

In reply to by DingleBarryObummer

holdbuysell J S Bach Thu, 05/10/2018 - 22:06 Permalink

JSB, I've had people retort to similar statements as yours by saying 'well, someone is going to be the bully in the might makes right game, and it's better that it's us than them'. It's nihilistic, understood, but how does one reply to that statement when there is truth to it as long as the world is led by psychopaths that always lust for more power?

In reply to by J S Bach

Mustafa Kemal holdbuysell Thu, 05/10/2018 - 22:37 Permalink

" 'well, someone is going to be the bully in the might makes right game, and it's better that it's us than them'"

The way you respond is: this is a loaded sentence. It is not a military "might makes right" game. China and Russia are not using military might, they are using diplomacy and cooperation. Our error is thinking that might makes right, it doesnt; it only reminds one that if you live by the sword, you die by it. It appears we are going to die by it.


We could cut 3/4 of our MIC budget and use the funds to build infrastructure to start making things again, but we wont because there is more profit in the woar off of our taxes and future of our children

Might makes right is not a truth, it is an attitude.

In reply to by holdbuysell

bowie28 J S Bach Thu, 05/10/2018 - 22:09 Permalink

"Hopefully, the Persians will be impervious to this and rely on Russia and China for trade to thwart the evil plans of the usurers."


The problem Iran has with this is Trump is already putting the screws to China on Trade and he is going to make them decide which is a more valuable trading partner - US or Iran.

I've been saying all along he is not going to invade Iran.  He doesn't need to.  He is going to shut down their exports and cut off their access to financial system and make sure no one comes to bail them out.

The good news is all he wants from them is a new de-nuke agreement on his terms.  He is not trying to do a regime change or force a Rothschild central bank on them.  Actually it's almost the opposite.  Iran can stop the pain very quickly once they decide to cut ties the Rothschild and Soros puppets who are pressuring them to stay in the JCPOA.


In reply to by J S Bach

roddy6667 bowie28 Thu, 05/10/2018 - 22:25 Permalink

Trump will not "put the screws to China" in any trade war. He will just shoot himself in the foot. It has already started. A lot of American farmers have been hurt by the program and have changed their opinion about Trump. By the time he finishes, all the US car manufacturers will have lost billions because of the MAGA bullshit and laid off a lot of American workers. All these people he is hurting are his voter base.

In reply to by bowie28

bowie28 roddy6667 Thu, 05/10/2018 - 22:32 Permalink

Agree to disagree about whether he is going to play hardball with China and others.

The economic trends and trade deficits previous trade policies created are not sustainable.

There is going to be some pain like in any other transition but it needs to be changed so we can hope to have a viable economy to rebuild with after the current mega bubble bursts and everyone loses 60% of their 401k again.

I have a feeling there will also be a lot of former federal employees joining the private sector in the next few years.

In reply to by roddy6667

bowie28 Mustafa Kemal Thu, 05/10/2018 - 22:55 Permalink

My take is Bolton and Giuliani regime change talk is disinfo.  Trump wants the Iranians to think he may launch a full scale invasion at any moment.

Remember what he said about being unpredictable?  This is a head fake.

Guiliani is not stupid.  He says things because its part of the plan.  He "slipped" on mentioning the Cohen payment because they knew it would come out and was better to get it over with on their timing rather than MSM spring it on them at the wrong time. 

Do you really think he mistakenly mentioned regime change and then a memo on regime change leaked on the same day and it wasnt planned that way?

Trump wants a new nuke deal, not another pointless war.



In reply to by Mustafa Kemal

bowie28 No1uNo Thu, 05/10/2018 - 22:57 Permalink

Could it be the large number of Sens and Reps not running, some of them were talked to and advised they may be facing criminal indictments in the near future so its time to step aside and let the party get another candidate ready?

I wonder if they have been sitting on some sealed indictments that will drop real close to the midterms, like with not enough time for the Dems to get a viable replacement candidate?  Oh that would sure be a dirty trick... :)


In reply to by No1uNo

Chupacabra-322 Kaiser Sousa Thu, 05/10/2018 - 22:04 Permalink

Their Fiat being a Satanic / Lucerferian System of Debt, Bondage, Enslavement & Control.


A Satanic System of Control over all Mankind which they intend to implement from their Lucerferian Hq in ZioNeoConFascist Isreal via The Yinon Plan & Operation Talpiot from their NWO Temple Mount. 


And, the Zionist Globalist want to wage this Depopulation WWIII from their NWO Lucerferian Temple Mount Hq.


Zionost Kabala Babylonian “Fake Jews” who manipulate through Lucerferian / Santanic Deception Gas Lit into your Psyche.  


In other words, the real “Anti-Semites. 


The Lucerferian / Santic Hq.’s is Isreal.

However, Satan does set up shop in the US through his Duel Israeli minions.  


Remember Five points:


1. Isreal will fight to the very last American Soldiers Death.

2. The Zionist screams in Pain as he Stikes you.

3.The Yinon Plan.

4.Operation TALPIOT.

5. Qatari Pipeline Petro Dollar Vs. Russia / China Petro Yaun.


In reply to by Kaiser Sousa