The United States announced sanctions on a Turkish bank as well as two other entities, as part of its latest economic squeeze on Iran under ‘Operation Economic Outcast’.
The sanctions, announced on the website of the US treasury department, were imposed on the Golden Global Investment Bank, a small firm which has a capital of about $34 million.
US further designated the two subsidiaries of the Golden Global Bank – Golden Global Varlik Kiralama Anonim Sirketi and Golden Global Portfoy Yonetimi Anonim Sirketi.
This comes a week after the US treasury moved to sanction the United Arab Emirates branches of Egypt’s second largest bank, Banque Misr. The treasury's Financial Crimes Enforcement Network proposed a measure revoking Banque Misr’s UAE correspondent banking access to US financial institutions, Bloomberg reported.
‘Critical financial lifeline’: Why did US sanction a small Turkish bank?
In a statement on Friday, the US department of treasury said it had “severed the Iranian regime’s critical financial lifelines” in Turkey.
{{/usCountry}}In a statement on Friday, the US department of treasury said it had “severed the Iranian regime’s critical financial lifelines” in Turkey.
{{/usCountry}}The treasury department alleged that the Golden Global Bank had facilitated tens of millions of dollars’ worth of transactions for the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). It further said that the it had also provided Iran with the “key correspondent banking access that allows it to move its funds internationally.”
“Türkiye-based Golden Global Yatirim Bankasi Anonim Sirketi was established for the purpose of enabling Iran’s rahbar network to transfer oil revenues from China to Turkey, where it could then be converted to cash and gold by rahbar money exchangers,” the department stated.
Following the sanctions, the department said that all property and interests in property of the designated or blocked persons which are in possession or control of US persons would be blocked and must be reported to the OFAC.
Also Read | Why Washington’s ‘Economic D-Day’ Against Iran Faces Steep Odds
What is ‘Operation Economic Outcast’?
The United States is imposing ew sanctions on Iranian individuals, companies and ships accused of supporting Tehran’s military activities, cyberattacks and illegal oil trade under ‘Operation Economic Outcast’.
The measures target networks involved in buying weapons, gathering intelligence, hacking US infrastructure and moving Iranian oil to generate revenue for Iran’s regime and the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), US state department spokesperson Tommy Pigott has said.
The sanctions were announced on August 24 in an effort to seemingly cut off Iran’s lifelines. Trump has, in the past few days, attempted to use economic pressure as a major weapon against Iran. Washington wants to cut Iran off from money and make it harder for the government to fund itself. The success of the plan will depend heavily on whether other countries follow the US sanctions.