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Iran Bills Would Prohibit Banks from Processing U-Turn Transactions
By Brian Orsak
printTwo of the most stringent of several federal bills meant to increase financial pressure on Iran would forbid banks from processing transactions indirectly tied to Iranian entities. The bills, H.R.1400 and S.970, jointly called the Iran Counter-Proliferation Act of 2007, would prohibit U.S. banks and foreign banks operating in the U.S. from engaging in so-called u-turn transactions. Considered by critics as a backdoor for Iranians to use U.S. financial institutions, u-turn transactions are typically made when non-Iranian parties use U.S. dollars in deals involving Iran. Such payments are allowed to process through U.S. banks provided that the transactions neither begin...
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