The State Department insisted Wednesday that it is not “coaching” foreign banks on how to avoid U.S. sanctions on Iran, and said it’s only “advising” these banks.
“Not coaching… advising,” State Department spokesman Mark Toner said.
But later in his daily briefing with reporters, Toner did seem to admit that State is explaining to foreign banks what will and what won’t draw U.S. sanctions.
“As Iran complies with JCPOA and receives a certain amount of sanctions relief, it is incumbent on us … to live up to our end of this deal,” Toner said of the Joint Comprehensive Plan of Action, more commonly known as the Iran deal. “And part of that is to advise these banks and governments on ways that they can…”
“Avoid U.S. sanctions?” a reporter filled in for him.
“Precisely,” Toner replied. “Well, that they can work…” he added, but never got to finish his thought.
Toner’s briefing with reporters was another sign that the Obama administration’s plan to ease financial sanctions against Iran is difficult to describe, at least publicly. Republicans have charged the Obama administration with trying to allow dollar-denominated transactions with Iran that are done through foreign banks, and say that concession goes against the will of Congress.
Toner again rejected that this is the plan.
“We continue to advise banks and other governments on ways that they can conduct business with Iran in a way that does not violate existing U.S. sanctions, and there are ways to do that, but it does not involve banks converting money to dollars or otherwise,” he said.
When asked if State was busy trying to show foreign banks “loopholes” in U.S. sanctions law, Toner shot back, “That’s inaccurate.”
“It’s part of an effort to provide guidance to ensure that they understand clearly the extent of U.S. sanctions relief,” Toner added. “And it’s complicated.”
“And to advise them on that is not necessarily giving some kind of tacit approval or some workaround by which they can avoid loopholes,” he said. “I think that’s not what we’re trying to do.”
Toner was also asked whether State Department officials were traveling the world, on a “road show,” to help banks avoid sanctions, or whether meetings with foreign banks were only being held as needed.
“I wouldn’t refer to it as a road show,” he said. “I think we’re advising them as appropriate.”
