What if everybody got expelled from the U.S. financial system?

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U.S. Warns Europe That Its Iran Workaround Could Face Sanctions

By Jonathan Stearns and Helene Fouquet
Bloomberg News
Wednesday, May 29, 2019

The Trump administration escalated its battle with European allies over the fate of the Iran nuclear accord, threatening penalties against the financial body created by Germany, the U.K., and France to shield trade with the Islamic Republic from U.S. sanctions.

Sigal Mandelker, the Treasury Department's undersecretary for terrorism and financial intelligence, signaled in a May 7 letter obtained by Bloomberg that Instex, the European vehicle to sustain trade with Tehran, and anyone associated with it could be barred from the U.S. financial system if it goes into effect.

... Dispatch continues below ...


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"I urge you to carefully consider the potential sanctions exposure of Instex," Mandelker wrote in the letter to Instex President Per Fischer. "Engaging in activities that run afoul of U.S. sanctions can result in severe consequences, including a loss of access to the U.S. financial system."

Germany, France, and the U.K. created Instex in January to allow companies to trade with Iran without the use of U.S. dollars or American banks -- thus allowing them to get around wide-ranging U.S. sanctions that were imposed after the Trump administration abandoned the 2015 Iran nuclear deal last year. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-05-29/u-s-warns-europe-that...

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