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Source: https://www.wsj.com/opinion/hit-iran-in-its-shadow-bank-accounts-bb4af3ac?mod=opinion_lead_pos6
Hit Iran in Its Shadow Bank Accounts
(Wall Street Journal) Michael Doran - The U.S. ought to seize the billions of dollars Iran's rulers have hidden offshore. Freezing these assets could have an effect comparable to a military attack - at a fraction of the risk. The U.S. Treasury knows where Iran's money is, but successive administrations have hesitated to act for fear of damaging relations with a valued ally - the United Arab Emirates. To evade U.S. sanctions, Iran has built an elaborate shadow banking system - a network of shell companies and financial intermediaries that allows the regime to move money at scale. This system allows Tehran to sell oil illicitly to China and launder the proceeds to procure export-controlled technology for its military and nuclear programs. Last October, the U.S. Treasury Department stated that "companies based in the UAE (99% of which were located in the Emirate of Dubai) transacted the highest volume of [Iran's] potential shadow banking funds." This system keeps the Iranian regime alive with Dubai serving as its economic lung. What's required is a strategy that freezes Iranian assets already in hand and forces the banks involved - especially in Dubai - to choose between compliance and punishment. Any financial institution that facilitates Iranian transactions should face immediate and substantial fines. The writer is a senior fellow and Director of the Center for Peace and Security in the Middle East at the Hudson Institute.