Iran Cash Flow Squeezed

The Jerusalem Post reports that the US has cut off Iran from the US banking system.

The Bush administration, stepping up pressure on Tehran, moved Friday to sever a big Iranian state-owned bank from the US financial system.

Stuart Levey, the Treasury Department's undersecretary for terrorism and financial intelligence, said the government's action was against Bank Saderat, which the United States contends is used by Iran to transfer money to terrorist groups, including Hizbullah.

While Iranian financial institutions are barred from directly accessing the US financial system, they are permitted to do so indirectly through banks in other countries. The United States is closing down that avenue for Bank Saderat. The action, which involved a change in regulations, doesn't apply to other Iranian banks, another Treasury official said.

It marked the first time Treasury had resorted to a regulatory change of this kind to sever a bank, the official said.

The squeeze is on.

It doesn't matter how much money you have in the bank if you can't get the money moved where it is "needed".

Here are some links to my previous Cash Flow Jihad articles:

Iran to Enter Cash Flow Jihad Zone
Lebanon's Cash Flow Problems
Hizballah Joins the Cash Flow Jihad
Cash Flow Jihad Strikes Hamas
Cash Flow Jihad Meets Aftermath
Iran to Enter Cash Flow Jihad Zone
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