Readers who are avidly following the progress, through the American legislative process, of the Nuclear Iran Prevention Act of 2013*, will generally agree on one thing: Iran sanctions to date are not working. Iran adroitly evades global sanctions, by working through third countries whose financial institutions don't mind taking the small risk that US regulators or law enforcement agencies will tumble to their expansive and complex money laundering and product diversion techniques.
So why is the new act any different ? It establishes mandatory sanctions for any financial institution that enables product diversion, where the end user is Iran. Will the US uniformly enforce this ? We shall see, but I recommend closing the US branches, agencies and offices of any of the offending banks, and terminating their US correspondent relationships. After a number of those banks, unable to compete without US access, close up, you will see a great reluctance on the part of others to become embroiled in Iran sanctions violations punishment; We call this deterrence.
An I being unduly optimistic ? Perhaps, but until we see radical and effective measures, the massive Iranian sanctions evasion machine will just keep rolling along. Terminate, with extreme prejudice, any US banking access to banks who facilitate Iranian products acquisition and diversion.
*House of Representatives passes Nuclear Iran Prevention Act