01 April 2015

US sets sights on ECB's Target2 over Iran sanctions

22 February 2013  |  4358 views  |  0 cash

US lawmakers are putting together a bill designed to make it harder for Iranian firms to use the European Central Bank's Target2 cross-border payments system, according to press reports.

Sanctions have effectively cut off Iran from America's financial system and prevented the country's firms from carrying out bank transactions in dollars.

Draft legislation is now being put together by Congress designed to make it as difficult for Tehran to carry out business in euros.

A congressional aide has told Reuters that the planned law would impose financial penalties on any entity that uses Target2 to do business with Iran.

The ECB told Reuters that "no illegitimate transactions are cleared in Target2 but any sanctions are EU sanctions and not an ECB competence."

Last year, under pressure from the EU, Swift took the unprecedented step of cutting off its financial messaging network to Iranian banks.

Lawmakers target ECB to stop Iran from using euros - Reuters

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

06 December, 2012
04 December, 2012
15 March, 2012
02 February, 2012
20 November, 2007

Related company news

 
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Europe sets the pace as fintech investment...
6437 views comments | 29 tweets | 20 linkedin
UK online banking fraud losses soar 48%
5981 views comments | 16 tweets | 19 linkedin
Future Money Focus: Mariano Belinky, Santa...
5677 views comments | 12 tweets | 12 linkedin
Google preps Gmail bill payment feature
5199 views comments | 15 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
5054 views comments | 11 tweets | 11 linkedin

Featured job

to $175k base, double OTE, benefits
New York City, NY (USA)

Find your next job