New Rules Warn Against Trading With Iran

In the wake of scandals, three regulators issue rules to halt aid to nuclear program.

In the wake of recent scandals over trade with Iran, three senior Israeli regulators yesterday released new rules warning against any dealings with bodies connected to the Iranian nuclear program.

The chairman of the Israel Securities Authority, Shmuel Hauser, the commissioner of capital markets, insurance, and savings in the Ministry of Finance, Oded Sarig, and the supervisor of banks in the Bank of Israel, David Zaken, published the new regulations at the same time, each in their own sphere of authority.

zaken - Tomer Appelbaum - July 8 2011
Tomer Appelbaum

Each of the regulators released draft directives on the risks entailed in dealing with entities designated on international lists as aiding Iran's nuclear program and programs related to it.

These new rules are part of a range of steps being taken by Israel in its struggle against Iran's nuclear program, they said.

The directives alert financial institutions, banks, and credit card companies to the recent change in legislation on the matter, and to the lists that have been published by international bodies - in the wake of a cabinet decision made in April. The Knesset Constitution, Law and Justice Committee included trading with Iran as a money-laundering offense.

The lists include the names of the entities that have been designated as maintaining prohibited connections with Iran. In addition, the new regulations require every institution to evaluate its level of exposure to these risks.

The goal of the directives is to increase awareness of the consequences of maintaining contact with entities that aid the advancement of Iran's nuclear program, and to ensure that appropriate policies are adopted to deal with those risks, said the regulators.

Each of the regulators will hold hearings on the matter and will then issue final directives.