Jeremy Paner Discusses Operation Economic Outcast with Arabian Gulf Business Insight
U.S. Treasury signals an increasingly aggressive Iran sanctions enforcement posture.
Highlights
Foreign financial institutions face increased scrutiny from regulators as the Trump administration pressures foreign governments to restrict economic ties with Iran.
Paner said Treasury Secretary Scott Bessent's remarks were the “public airing” of U.S. officials' frustration with efforts to get foreign counterparts to stop doing business with Tehran.
Paner said the administration is shifting toward Iran's “economic isolation,” including efforts to shut down branches and subsidiaries of Iranian banks around the world.
Jeremy Paner spoke with Arabian Gulf Business Insight about the Trump administration's efforts to increase economic pressure on Iran and the potential implications for financial institutions in the Middle East.
Paner said Treasury Secretary Scott Bessent's recent remarks were best viewed as the “public airing” of U.S. officials' frustration at the failure of diplomatic efforts to get foreign counterparts to stop doing business with Tehran.
“I think the audience for the speech yesterday was more central banks and foreign ministers than individual financial institutions,” he said. “So, if I'm a financial institution in the UAE, I'm expecting the central bank to knock on my door and ask questions.”
Paner also said Bessent was clear that the administration is shifting from seeking to reduce the regime's access to funds for its nuclear, missile and terrorist activities toward “economic isolation.”
“How do you do that? You get branches and subsidiaries of Iranian banks around the world shut down,” Paner said.
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