White House issues Executive Order implementing Iran Sanctions Act

The Obama administration on Monday evening released an Executive Order that is meant to implement portions of the 1996 Iran Sanctions Act (ISA).

In a statement released by the White House that was partially read on the House floor, the administration said the order is meant to implement some ISA sanctions that depend on actions by the private sector. This includes prohibiting U.S. financial institutions from making loans or giving credit to sanctionable entities under ISA, engaging in certain foreign exchange transactions, and making payments between financial institutions that would help a sanctionable entity.

The order said the White House has instructed the Departments of Treasury and State to issue rules and regulations needed to impose these sanctions, under the authority of the International Emergency Economic Powers Act (IEEPA).

"All executive agencies of the United States Government are directed to take all appropriate measures within their authority to carry out the provisions of the order," the White House said.

The order will likely be seen by House Republicans and Democrats as an attempt to head off congressional efforts to tighten Iran sanction further through legislation. Members of both parties introduced a bill in mid-May that would eliminate what they see as loopholes to the imposition of sanctions under ISA and last year's Comprehensive Iran Sanctions Accountability and Divestment Act.