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US announces sanctions against Iran

(Agencies)
Updated: 2007-10-25 22:57

Paulson called on "responsible banks and companies around the world" to end relationships with the three banks and companies and affiliates of the IRGC.

"As awareness of Iran's deceptive behavior has grown, many banks around the world have decided as a matter of prudence and integrity that Iran's business is simply not worth the risk," Paulson said. "It is plain and simple: Reputable institutions do not want to be the bankers for this dangerous regime."

The sanctions would be unilateral, however, and are believed to be the first of their type taken by the United States specifically against the armed forces of another government.

Paulson said it is nearly impossible for overseas businesses or banks to "know one's customer" in Iran and avoid unwittingly funding terrorism or other illicit activities.

Because of the Revolutionary Guard's broad reach into business and other spheres, "it is increasingly likely that if you are doing business with Iran you are doing business with the IRGC," Paulson said.

The Revolutionary Guards organization, formed to safeguard Iran's 1979 Islamic revolution, has pushed well beyond its military roots, and now owns car factories and construction firms and operates newspaper groups and oil fields.

Current and former members now hold a growing role across the country's government and economy, sometimes openly and other times in shadows.

The guards have gained a particularly big role in the country's oil and gas industry in recent years, as the national oil company has signed several contracts with a guards-operated construction company. Some have been announced publicly, including a $2 billion deal in 2006 to develop part of the important Pars gas field.

Now numbering about 125,000 members, they report directly to the supreme leader and officially handle internal security. The small Quds Force wing is thought to operate overseas, having helped to create the militant Hezbollah group in 1982 in Lebanon and to arm Bosnian Muslims during the Balkan wars.

The administration accuses the Quds Force of sending fighters and deadly roadside bombs, mortars and rockets to kill American troops in Iraq in recent years - allegations that Iran denies.

The United States pressures US and European banks not to do business with Iranian banks, such as Bank Sedarat that the administration believes help finance guards' business operations. But the United States has been known for some time to also be considering naming the entire group as a foreign terrorist organization, allowing wider financial crackdowns.

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