The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an update on Friday evening to its guidance about sanctions relief to Iran under the nuclear agreement. The update is more just than a clarification of existing regulations; Treasury has now significantly eased restrictions on transactions between Iran and non-U.S. banks and companies by allowing foreign financial institutions to process dollar-denominated transactions involving Iran.
Back in March, press reports revealed that the U.S. government was considering this move, provided the transaction did not touch the U.S. financial system. Congress responded by raising concerns that this measure would go far beyond Washington’s obligations under the nuclear agreement. A “time out” followed, during which the White House was apparently weighing its options.
Read the full article at the Foundation for Defense of Democracies.