SEC to join in sanction effort

Iran Times International July 30, 2010:In an effort to increase pres- sure on the Islamic Republic, the Securities and Exchange Commission (SEC), the top US financial watchdog, told the Congress last week it is working to support companies that divest from Iranian investments and penalize those that do not. In line with the newest US sanctions on Iran that President Obama signed into law in June, these SEC measures will better clarify when companies will face sanctions for working with Iran. “There are punitive sanctions that can be levied against companies that violate the Iran Sanctions Act,” SEC Chair Mary Schapiro told a House Financial Services subcommittee, “that can create material contingent liabilities that need to be disclosed by public companies.” Applauding those efforts is United Against Nuclear Iran (UANI), a nonprofit coalition of 21 organizations focusing on preventing Iran from going nuclear. UANI believes Iran’s nuclear pursuits are for the sole purpose of acquiring nuclear weapons. UANI President Mark D. Wallace, who most recently served as a US ambassador at the UN, said, “American investors have a right to know if they are investing in a company that does business with a state sponsor of terrorism that is subject to crippling sanctions, and therefore substantial financial risk.” The rules on which Schapiro said the SEC is working would “make it clear that an investment company cannot be sued for divesting itself from stocks of companies that deal with Iran,” thus making it easier for them to withdraw themselves. Schapiro said she thought there was a need for companies to disclose their stake in firms that are investing in Iran.

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