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U.S. Bans Iranian €˜u-turn’ Deals

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The United States banned its financial institutions from serving as a conduit for Iranian transactions.

The ban, instituted Nov. 6, affects deals between foreign entities and Iranian financial institutions that must be routed through U.S. entities.

A substantial portion of the world’s finances is routed through the United States, and the rescission of Iran’s “U-turn” license to conduct such deals will further restrict its abilities to trade.

Multinational groups have said Iran’s financial institutions fail to meet standards to prevent money-laundering terrorist financing, a factor cited in the U.S. Treasury’s decision.

The ban also aims to squeeze Iran further toward having the Islamic Republic end its nuclear weapons program.

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