March 24, 2013

WASHINGTON (JTA) — The U.S. Senate unanimously authorized funding for programs that would facilitate the shutting out of Iran from the European Central Bank’s money transfer system.

The amendment to the budget resolution passed early Saturday morning authorizes funding to “to prevent Iran from directly or indirectly accessing the European Central Bank’s Target2 settlement platform and to block Iran’s access to its euro-denominated foreign exchange holdings.”

While the overall budget — the first passed by the Senate in four years — barely squeaked through by just 50-49, the money transfer amendment had the support of the entire body.

The amendment, sponsored by Sens. Mark Kirk (R-Ill.) and Joe Manchin (D-W. Va.) comes after a letter in February from a bipartisan slate of 36 senators urging European authorities to authorize such a shutout.

Obama administration officials say they too are pressing their European counterparts on the matter.

The senators allege that Iran uses the system to launder euro in its accounts, allowing it to alleviate tough U.S. and European sanctions aimed at forcing the regime to be more transparent about its nuclear program.

The funding authorization does not specify programs or an amount, other than to say any such funding must not add to the national deficit — in other words, must be compensated for by cuts elsewhere. 

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