Press Room
 

June 15, 2007
HP-461

Treasury Action Targets Individuals Involved in Iran’s Nuclear Program

The U.S. Department of the Treasury today designated two Iranian individuals, Mohammad Qannadi and Ali Hajinia Leilabadi, for their involvement in Iran's nuclear program.

"Even individuals who are active in Iran's nuclear program are going to be held to account for their conduct and isolated by the international financial community," said Stuart Levey, Under Secretary for Terrorism and Financial Intelligence.

This action was taken pursuant to Executive Order 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their supporters. Designations under E.O. 13382 are implemented by Treasury's Office of Foreign Assets Control (OFAC), and they prohibit all transactions between the designees and any U.S. person and freeze any assets the designees may have under U.S. jurisdiction.

Mohammad Qannadi acts or purports to act for or on behalf of the Atomic Energy Organization of Iran (AEOI). The AEOI manages Iran's overall nuclear program and reports directly to the Iranian president. Identified by President George W. Bush in the Annex to E.O. 13382, the AEOI is the main Iranian institute for research and development activities in the field of nuclear technology, including Iran's centrifuge enrichment program and experimental laser enrichment of uranium program.

Ali Hajinia Leilabadi acts or purports to act for or on behalf of the Mesbah Energy Company, an AEOI subordinate designated by OFAC in January 2006. Mesbah has been used to procure products for Iran's heavy water project. Heavy water is essential for Iran's heavy-water-moderated reactor project, which will provide Iran with a potential source of plutonium well-suited for nuclear weapons. Heavy water is believed to have no credible use in Iran's civilian nuclear power program, which is based on light-water reactor technology.

The AEOI and Mesbah Energy Company are both named in the Annex to United Nations Security Council Resolution (UNSCR) 1737 for their involvement in Iran's nuclear program. Mohammad Qannadi and Ali Hajinia Leilabadi were also both included in the Annex to UNSCR 1737 for their respective roles with AEOI and Mesbah. The UN identified Qannadi as AEOI's Vice President for Research and Development, while identifying Leilabadi as the Director General of the Mesbah Energy Company.

In August 2006 the Iranian President awarded government medals to Qannadi, Leilabadi, and 12 other individuals, for their contributions in the field of nuclear technology. Qannadi received the second medal for research for his role as AEOI research and technology deputy. Leilabadi was awarded the third medal of excellence in management for his role as director and deputy manager of Mesbah.

Background on E.O. 13382

Today's action builds on President Bush's issuance of E.O. 13382 on June 29, 2005. Recognizing the need for additional tools to combat the proliferation of WMD, the President signed the E.O. authorizing the imposition of strong financial sanctions against not only WMD proliferators, but also entities and individuals providing support or services to them.

In the Annex to E.O. 13382, the President identified eight entities operating in North Korea, Iran, and Syria for their support of WMD proliferation. E.O. 13382 authorizes the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, and other relevant agencies, to designate additional entities and individuals providing support or services to the entities identified in the Annex to the Order.

In addition to the entities identified in the annex of E.O. 13382, the Treasury Department has designated 29 entities and four individuals as proliferators of WMD, specifically:

  • Eight North Korean entities on October 21, 2005;
  • Two Iranian entities on January 4, 2006;
  • One Swiss individual and one Swiss entity tied to North Korean proliferation activity on March 30, 2006;
  • Four Chinese entities and one U.S. entity tied to Iranian proliferation activity on June 8, 2006;
  • Two Iranian entities on July 18, 2006;
  • Three Syrian entities on January 4, 2007;
  • One Iranian entity, one British entity, and one individual tied to Iranian missile proliferation on January 9, 2007;
  • Three Iranian entities on February 16, 2007; and
  • Three Iranian entities on June 8, 2007; and
  • Two Iranian individuals on June 15, 2007.

The designation announced today is part of the ongoing interagency effort by the United States Government to combat WMD trafficking by blocking the property of and prohibiting transactions with entities and individuals that engage in proliferation activities and their support networks.

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