Office of the Spokesman
November 6, 2008
Daily Press Briefing - November 6
Treasury Revokes "U-Turn" License for Iran
Question: What can you tell us about the Department of Treasury revoking the "U-Turn" License for Iran?Released on November 6, 2008
Answer: Today, the Department of Treasury announced that it is revoking the “U-turn” general license for Iran, thereby further restricting Iran’s access to the U.S. financial system. The revocation of this license protects our financial sector from the risks posed to the international financial system by Iran. Last month, the Financial Action Task Force (FATF) warned about the risks posed to the international financial system by the continuing deficiencies in Iran’s anti-money laundering and terrorist financing regime (AML/CFT), and in particular, highlighted Iran’s lack of effort in addressing the risk of terrorist financing.
“U-turn” transfers are conducted on behalf of one country’s account holders and banks, but initiated and terminated offshore by a third-country financial institution, and only pass through the U.S. financial system from one third-country financial institution to another.