|Subordinate To:||Aerospace Industries Organization (AIO)|
The U.S. Department of the Treasury has described Bank Sepah, Iran's fourth largest state-owned bank, as "the financial linchpin of Iran's missile procurement network." The bank has reportedly facilitated dozens of transactions for the purchase of missile-related items abroad, including from entities in China and from North Korea's chief ballistic missile exporter, KOMID. The bank and all of its branches abroad are the target of U.S. and U.N. financial sanctions, constraining its access to the international financial system.
"Iran's Bank Sepah Designated by Treasury, Sepah Facilitating Iran's Weapons Program," U.S. Department of the Treasury, 9 January 2007, www.ustreas.gov.; UNSCR 1747 imposed financial sanctions on the bank. The resolution also listed Ahmad Derakhshandeh, the bank's chairman and managing director. In January 2007, the U.S. Department of the Treasury used Executive Order 13382 to freeze the bank's assets in the United States and prohibit all transactions between Bank Sepah and U.S. citizens.
This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, or agents. Copyright © 2013 National Journal Group, Inc., 600 New Hampshire Ave., N.W., Washington, DC 20037.