http://www.financialtaskforce.org/2012/10/09/is-anti-money-laundering-enforcement-helping-to-tank-the-iranian-rial/ Sat, 18 May 2013 19:01:00 -0400 hourly 1 http://wordpress.org/?v=3.5.1 http://www.financialtaskforce.org/2012/10/09/is-anti-money-laundering-enforcement-helping-to-tank-the-iranian-rial/comment-page-1/#comment-63503 hurricanewarningdc Mon, 15 Oct 2012 16:30:00 +0000 http://www.financialtaskforce.org/?p=21563#comment-63503 The question isn’t really whether AML laws are causing an effect in Iran. It’s whether they’re causing the desired effect. And perhaps whether the secondary and tertiary effects are ones that we’re willing to bear.
So we didn’t create sanctions to force a currency crisis; we did it to make Iran abandon its nuclear weapons program. And on those results from squeezing the balloon, that’s yet to be determined but if anything, attacks on the US and interests/allies have continued or increased. Become more brazen. If we’re not going to achieve the first intended effect, do we really want to be forcing a desperate Iran into a corner? (E.g., Does a tanking Rial cause an Iranian revolt or cause a world war?)
I’m not saying that we shouldn’t have sanctions. Maybe they do and will work. But they’re not the panacea that many of our leaders (and perhaps wonks) wish us to believe.

]]>