Sanctions lifted on Iraqi bank

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After that action, the bank changed its behavior, the department claims, freezing the Iranian accounts and seeking to stay out of the Iranian financial sector.

The Treasury Department said that the reversal was proof of the power of sanctions in convincing institutions not to support Iran.

“As today’s delisting demonstrates, our sanctions are flexible and can be lifted if the conduct that led to the sanction terminates,” said a statement from David Cohen, the department's under secretary for terrorism and financial intelligence. “As we increase our sanctions against Iran, we will continue to target any financial institution that works with designated Iranian banks or attempts to assist Iran in evading sanctions.”

Sanctions have been a key tool for the administration as it seeks to isolate Iran and prevent it from being able to obtain a nuclear weapon.

As result of the action, Elaf Islamic Bank will once again be able to access the American financial market, and its assets under U.S. control will be unfrozen.