Joe Manchin III on War & Peace
Democratic Jr Senator; previously Governor
Congressional Summary:Prohibits US-based correspondent accounts or a payable-through accounts by a foreign financial institution that knowingly:
Arguments for and against bill: (New York Times, May 8, 2013): Seeking to escalate pressure on Iran, a bipartisan group of senators introduced legislation that would deny the Iranian government access to its foreign exchange reserves, estimated to be worth as much as $100 billion. The legislation would be the first major new sanction confronting Iran since its inconclusive round of negotiations last month on its disputed nuclear program.
Sponsors of the legislation contend that Iran is not bargaining in good faith while it continues to enrich uranium. Part of the reason, they say, is that Iran has been able to work around the worst effects of the sanctions by tapping its foreign currency reserves overseas, which are largely beyond the reach of current restrictions. "Closing the foreign currency loophole in our sanctions policy is critical in our efforts to prevent Iran from acquiring a nuclear weapons capability," the sponsors said.
Critics said the new legislation risked further alienating Iranians who suspect that the sanctions' true purpose is not to pressure Iran in the nuclear negotiations, but to cause an economic implosion that would lead to regime change. "When we've cemented a sanctions escalation path, we're creating a trajectory toward actual confrontation," said the founder of the National Iranian American Council, a Washington group that opposes sanctions. Some Iranian leaders, he said, see the sanctions "as a train that can only go in one direction and has no brakes."
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