U.S. President Barack Obama signed on Saturday a
wide-ranging defense funding bill in Honolulu, Hawaii, calling for
new sanctions against financial institutions doing business with
Iran's state banking institutions.
The bill, approved by Congress last week, aims at reducing
Tehran's oil revenues but gives the U.S. president powers to waive
penalties as required.
Obama singed the bill into law although he has "serious
reservations" about provisions regarding counter-terrorism efforts,
including clauses that regulate the detention, interrogation and
prosecution of suspected terrorists.
"The fact that I support this bill as a whole does not mean I
agree with everything in it," Obama said in a prepared statement
accompanying his signature in Hawaii, where he is having a family
holiday.
According to an amendment contained in the sweeping bill, foreign
financial institutions doing business with Iran's central bank are
banned from opening or maintaining correspondent operations in the
U.S.,
The ban only applies to foreign central banks for transactions
that involve the sale or purchase of petroleum or petroleum
products. The penalties do not go into effect for six months,
according to the bill.
However, Obama can waive the penalties for national security
reasons. If the country with jurisdiction over the foreign financial
institution has significantly reduced its purchases of Iran oil,
Obama can also waive the measures, the bill stipulates.
U.S. officials said Washington was engaging with its foreign
partners to ensure the sanctions can work without harming global
energy markets.
They also noted that the bill does not change U.S. strategy for
engaging with Iran. Washington seeks to ratchet up pressure on Iran
without disrupting interests of the U.S. and its allies.
