U.S. Sanctions on Entities Exporting Technology to Iran: What Prompts the U.S. Treasury’s Decision?
US Sanctions on Entities Exporting Technology to Iran
The US Treasury has imposed sanctions on entities for illegally exporting technology to Iran, including a company responsible for developing a digital platform for the Central Bank of Iran.
Sanctions on Network of Entities for Illegal Exports
The Office of Foreign Assets Control of the US Department of the Treasury announced sanctions on a network of entities that facilitated “the illegal export of goods and technology from over twenty US companies to end-users in Iran.”
Sanctions on Iran-based Informatics Services Corporation (ISC)
Among the sanctioned entities was the Iran-based Informatics Services Corporation (ISC), a subsidiary of the Central Bank of Iran, responsible for developing the digital platform for the central bank’s digital currency (CBDC) for Iran.
Advance Banking Solution Trading DMCC Also Sanctioned
OFAC also imposed sanctions on the UAE-based Advance Banking Solution Trading DMCC, which acted as a front company for ISC, falsely claiming to be the ultimate end-user of the products, concealing the intention to transfer items to Iran from US suppliers.
Development of Iran’s Central Bank Digital Currency
Iran, like many other countries, is considering the potential benefits of a central bank digital currency (CBDC), such as facilitating cross-border transactions, reducing transaction costs, and increasing financial inclusion. ISC began working on the digital rial back in 2018 using Hyperledger Fabric technology, a blockchain platform hosted by the Linux Foundation.
The sanctions imposed by the US Treasury aim to restrict Iran’s access to illegal technology exports while also serving as a measure to prevent violations of international regulations. The introduction of sanctions could have a significant impact on Iran’s technological development and international relations with other countries.
