This bill would prevent the U.S. dollar from being used by Iran to complete offshore financial transactions as long as it continues to engage in illegal activities like developing ballistic missiles, supporting terrorism, and money laundering. The provisions of this bill are already U.S. policy, so the legislation — if enacted — would make them into law.
U.S. banks and other financial institutions would be prohibited from processing “U-turn” transactions that pass through a U.S. bank from a foreign bank that are then transferred to another foreign bank on behalf of a private or state-owned Iranian entity. Money transfers for humanitarian purposes would be allowed on a case-by-case basis.
If Iran — at any time — stops supporting terrorism and ends its ballistic missile program, then the prohibitions on the use of U.S. currency and U-turn transactions by Iranian entities would be lifted. At that point, the president would also be able to de-list Iran’s entire financial sector as a “primary money-laundering concern” after certifying that Iran has ceased those activities. Until that time the president would be prevented from allowing a system to be created that provides Iran with American dollars.