The US Treasury on Thursday imposed sanctions on Iran’s Bank Refah for facilitating the purchase of missiles and parts for fighter jets and submarines by the Iranian Defense Ministry.
Treasury said Bank Refah also facilitated payments from the Iran Aircraft Manufacturing Industrial Company to businesses and individuals linked to Iran's weapons-related procurement. The US Congress passed an expanded Iran sanctions act, called CISADA, last year authorizing the Treasury to take action against financial institutions involved in transactions with Iran's defense industry.
Treasury has now imposed sanctions on 20 banks owned by the government of Iran. The actions have effectively cut off international financing to these banks that together form the backbone of the banking industry in Iran.