Nuclear Issues

When it comes to U.S.-Iran relations, Iran’s nuclear program, and all of its implications, think tanks like the Belfer Center are at times of vital importance in assisting policymakers in conducting thorough investigations of key issues, Sahar Nowrouzzadeh says.

The Joint Comprehensive Plan of Action between Iran and the P5+1 presents significant implications for the future order of the Middle East. Just how it will impact that order remains uncertain. Will it shift Iranian foreign policy toward greater cooperation and reconciliation or produce greater Iranian regional empowerment and aggressiveness?

This report helps answer these and related questions. It includes views from leading experts in the Arab world to assess the impact of the nuclear agreement on Iran-Arab security relations.

Aaron Arnold, Associate of the Project on Managing the Atom at the Belfer Center for Science and International Affairs, writes that while Iran may receive sanctions relief as part of a final nuclear deal, it needs to take actions to strengthen its financial laws and regulations in order for it to truly be integrated into the global economy. He argues that Iranian financial laws, specifically those relating to money-laundering, terrorism financing, and proliferation financing, remain weak and do not meet the standard of the international financial community. These legal weaknesses have caused Iran to remain designated by the U.S. Treasury as a "jurisdiction of primary money-laundering concern," making it much harder for the Iranian financial sector to operate using American currency or the American financial system, which, despite recent developments such as the launch of the Asian Infrastructure Investment Bank, maintains the dominant role in global finance. He concludes that without these reforms to Iran's banking sector, its benefits from the ending of sanctions will be much smaller than desired by Iranian policymakers.

Aaron Arnold, Associate with the Project on Managing the Atom at the Belfer Center, and Nikos Passas, Professor of Criminal Justice at Northeastern University, argue in The Bulletin of the Atomic Scientists that an important, and generally overlooked, aspect of any deal with Iran is the role of banks and financial institutions in monitoring proliferation related transactions and keeping Iran from cheating on the agreement. They point out that banks are necessary for the monitoring and verification of a nuclear agreement because they provide the information used by sanctions enforcers to track illicit proliferation financing. At this point, several holes exist in detecting proliferation financing, including the lack of a clear template for banks and regulatory agencies to be searching for, and the lack of binding regulations for all forms of financial institutions, such as money remitters. They suggest that the Iranian nuclear deal offers a chance for these systematic holes to be plugged by centralizing analysis of data for proliferation financing and seeking reforms in the Iranian financial system.

"While a threat to U.S. interests, the Islamic State of Iraq and al-Sham (ISIS) presents us with a unique opportunity to 'reset' the Middle East equation—to actively transform regional relations, to abate the cold war between Iran and Saudi Arabia and to forge a new working relationship with Iran," writes Payam Mohseni. "As the United States moves to escalate its war against ISIS and forge a coalition against the terrorist group, it is important that Iran be included in the process. After all, U.S. and Iranian interests have increasingly converged in the Middle East with the emergence of a common enemy, and no power in the region is better suited to taking on ISIS than Iran and its affiliated Shi’a militias in Iraq."

The Spring 2011 issue of the Belfer Center newsletter features recent and upcoming activities, research, and analysis by members of the Center community on critical global issues. This issue highlights the Belfer Center’s continuing efforts to build bridges between the United States and Russia to prevent nuclear catastrophe – an effort that began in the 1950s. This issue also features three new books by Center faculty that sharpen global debate on critical issues: God’s Century, by Monica Duffy Toft, The New Harvest by Calestous Juma, and The Future of Power, by Joseph S. Nye.