Scott Bessent (Left), Treasury Secretary | https://www.scott.senate.gov
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced the imposition of sanctions on five entities and one individual based in Iran. These sanctions target entities that provide support to organizations managing Iran's nuclear program, specifically the Atomic Energy Organization of Iran (AEOI) and the AEOI-subordinate Iran Centrifuge Technology Company (TESA). The action aligns with the U.S. policy of denying Iran a nuclear weapon as outlined in National Security Presidential Memorandum 2.
"The Iranian regime's reckless pursuit of nuclear weapons remains a grave threat to the United States and a menace to regional stability and global security," stated Secretary of the Treasury Scott Bessent. He emphasized that the Treasury Department will continue to use its authorities to prevent Iran from advancing its nuclear agenda.
The sanctions are enforced under Executive Order 13382, which targets the proliferation of weapons of mass destruction and their delivery methods. Previously, the AEOI was included in the Executive Order Annex, having been re-designated by the U.S. Department of State on January 30, 2020. TESA, designated on November 21, 2011, works on projects supporting AEOI, particularly in centrifuge production used in uranium enrichment efforts.
Among those sanctioned, Atbin Ista Technical and Engineering Company (AIT) supports TESA by acquiring components for it. Majid Mosallat, an Iranian national serving as the chairman and managing director of AIT, has facilitated these acquisitions and shipments. Additionally, Pegah Aluminum Arak Company manufactures aluminum products for TESA. Both AIT and Pegah, along with Mosallat, have been designated for their roles related to TESA's operations.
Further sanctions target entities supporting AEOI. Thorium Power Company (TPC), Pars Reactors Construction and Development Company (Satra Pars), and Azarab Industries Co. (Azarab) have been designated under E.O. 13382. These organizations are linked to AEOI's nuclear activities, including reactor construction and development.
Sanctions implications include the blocking of assets belonging to the designated individuals or entities within U.S. jurisdiction. U.S. sanctions generally restrict transactions related to blocked persons unless authorized by OFAC. Sanctions violation may attract civil or criminal penalties. Export activities involving persons on the SDN List are subject to additional restrictions by the Bureau of Industry and Security.
The effectiveness of OFAC's sanctions depends on both designating and potentially removing persons from the SDN List. The aim of sanctions is to instigate positive behavior change rather than punishment. For removal processes, reference OFAC's guidelines.
