Bass, Berry & Sims attorney Thad McBride discussed the implications for European companies now that the United States has officially withdrawn from the Joint Comprehensive Plan of Action (JCPOA). Under the JCPOA, the United States had lifted certain sanctions on Iran in exchange for the country’s discontinuation of its nuclear program. While President Trump announced in May 2018 that the United States would withdraw from the JCPOA, the European Union will continue to honor the original agreement. The EU is also contemplating adding restrictions under its Blocking Statute, which could prohibit European companies from complying with American sanctions. European companies with business that crosses international borders, such as those in the financial industry, will be put in the difficult position of trying to comply with both sets of sanctions.
Thad opined that “most European financial institutions will choose to abide by the U.S. restrictions notwithstanding the Blocking Statute.”
The full article, “Iran Sanctions Muddle Leaves Financial Sector at Crossroads,” was published May 21, 2018, by PaymentsCompliance, a global leader in supporting the payments industry. The article is available online to subscribers.