The Department of Treasury on Tuesday sanctioned the governor of the Central Bank of Iran for allegedly funneling millions of dollars to support Hezbollah.
The Treasury labeled Valiollah Seif, governor of Iran’s Central Bank, and a second official at the bank, Ali Tarzali, as “specially designated global terrorists” for their role in the scheme.
According to the Treasury, the two helped the Islamic Revolutionary Guard Corps-Qods Force in support Hezbollah. Seif allegedly “covertly funneled millions of dollars” for the IRGC-QF through the al-Bilad Islamic Bank, an institution based in Iraq, to “enrich and support” Hezbollah.
Al-Bilad Islamic Bank was also sanctioned Tuesday.
“It is appalling, but not surprising, that Iran’s senior-most banking official would conspire with the IRGC-QF to facilitate funding of terror groups like Hizballah, and it undermines any credibility he could claim in protecting the integrity of the institution as a central bank governor,” Treasury Secretary Steve Mnuchin said in a statement. “The United States will not permit Iran’s increasingly brazen abuse of the international financial system. The global community must remain vigilant against Iran’s deceptive efforts to provide financial support to its terrorist proxies.”
The sanctions cut off Iran’s use of a “critical banking network,” the Treasury Department said, and seek to “stifle Iran’s ability to abuse the U.S. and regional financial systems.”
The action from the Trump administration comes after President Trump said the U.S. would be withdrawing from the Iran nuclear deal. As part of the withdrawal, some sanctions will be re-imposed within 90 days and others within 180 days from Trump’s announcement.
The Central Bank of Iran was not sanctioned as part of the administration’s announcement Tuesday, but the Treasury said that as of Aug. 7, the U.S. government will re-impose sanctions that extend to some of the Central Bank of Iran’s transactions. As of Nov. 5, additional sanctions will be re-imposed on specific people who engage in significant transactions with the Central Bank.
