EU says block on US sanctions on Iran of limited use for EU banks

By REUTERS
May 17, 2018 12:58
1 minute read.
Breaking news

Breaking news. (photo credit: JPOST STAFF)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

LONDON - Using European Union powers to ban banks in the bloc from complying with US sanctions on Iran would be of "limited" use given the global reach of finance, the EU's financial services chief said on Thursday.

US President Donald Trump decided on May 8 to revive Iran-related sanctions, including sanctions aimed at Iran's oil sector and transactions with its central bank.

European Commission Vice President Valdis Dombrovskis said the EU executive was assessing the economic impact and potential effect of U.S. sanctions on Iran, including their effect on EU companies and the financial sector.

The EU wants to salvage the Iran nuclear deal, which offers the Islamic Republic relief from economic sanctions in exchange for curbs on its nuclear program and Europe sees as an important element of international security.

The EU's so-called blocking statute bans any EU company from complying with US sanctions and does not recognize any court rulings that enforce American penalties.

But it has never been used and is seen by European governments more as a political weapon than a regulation because its rules are vague and difficult to enforce, serving mainly as a warning to the United States.

"Indeed the EU blocking regulation could be of limited effectiveness there, given the international nature of banking system and especially the exposure of large systemic banks to US financial system and US dollar transactions," Dombrovskis told the European Parliament.

"There are some difficult issues which we will need to address. We are working on how to exactly address those issues," Dombrovskis said.

He also told parliament it was important to have a "credible and coordinated" anti-money laundering system at the EU level without waiting for action from the United States, Dombrovskis added.

Earlier this year, the United States accused Latvia's third biggest bank, ABLV, of money laundering and breaking sanctions on North Korea, prompting its closure and triggering the Baltic state's worst financial crisis in a decade.

It raised questions about Europe's ability to monitor money laundering on its own turf.

Related Content

August 15, 2018
Netanyahu announces increase in security budget

By JERUSALEM POST STAFF