Senate Passes Defense Authorization with Iran Sanctions Amendment

On December 1, 2011, the Senate passed S. 1867, the fiscal year 2012 National Defense Authorization Act. Prior to its passage, the Senate adopted several amendments, including an amendment to require sanctions on financial institutions that do business with the Central Bank of Iran. According to a press release from the amendment's sponsor, the sanctions would prohibit financial institutions that do business with the bank of Iran from opening or maintaining correspondent banking accounts in the U.S. In the case of foreign central banks, the legislation would only apply to transactions for the sale or purchase of petroleum products and only after determining that the country with jurisdiction over the institution (1) has sufficient alternative petroleum supplies and (2) where the country has not taken steps to significantly reduce its purchases of Iranian petroleum or petroleum products. The amendment would also exempt from sanctions transactions for food, medicine and medical devices. In addition, the amendment seeks to deny Iran the resources for its nuclear weapons program.