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New York Regulator Expands Iran Sanctions-Violation Probe

Posted on 25 Jul 2013 by Neilson

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NY Fnancial Services regulatorNew York State's top financial regulator has expanded an investigation into reinsurers that might have provided policies on shipments to Iran, a potential violation of new U.S. sanctions, according to a letter posted on its website Wednesday.

Benjamin Lawsky, superintendent of New York's Department of Financial Services, in June sent a letter to 20 non-U.S. reinsurance companies requesting detailed information on their dealings with entities or people connected to Iran, according to a copy of the letter reviewed by The Wall Street Journal. That move came after a year-long probe that resulted in Mr. Lawsky's office saying it uncovered evidence that at least three reinsurance firms had insured shipments to Iran.

Mr. Lawsky sent another letter Wednesday to 20 additional firms and requested detailed information on all policies that may be subject to a U.S. law that went into effect earlier this month.

President Barack Obama in January signed an expanded sanctions law that bans any financial firm that does business in the U.S.--including reinsurers--from providing services to companies that trade with Iran. The law, which took effect July 1, was designed to cripple Iran's energy, shipping and shipbuilding sectors. The shipping industry relies heavily on insurance and reinsurance companies to reduce the risk of a major loss of ships and cargo.

Mr. Lawsky's department regulates banks and insurance companies that do business in New York state and are licensed by the department. He has the power to rescind a license from an institution the department finds is in violation of the law.



The Old Guy Jul 25 2013 10:57AM Report Abuse
I am evry happy to see that the New York Department of Financial Services has been spending Hundreds of Thousands of dollars researching violations not of State laws, but of Federal laws, and will step forward to re[present the Federal Government at the expense of New York taxpayers. Usually the state governmental people are asking the Fed's for money to fix flooding, rebuild infrastructure, and prevent future events, but not our Financial Services Department! Is this another political ploy, like Elliot Spitzer used to do? Spend the money and "let the people eat cake?" Marie Antonette
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