Financial Hardball: Corralling Terrorists and Proliferators

This hearing of the Subcommittee on Terrorism, Nonproliferation, and Trade today will look at corralling terrorists and proliferators--financial hardball, in other words.

Economic sanctions have long been a key diplomatic tool. Athens imposed a trade boycott on Sparta's ally Megara. And, of course, it is a long history, but in recent years the United States has increasingly relied upon reputational financial sanctions, particularly against North Korea and Iran. These sanctions target financial institutions employed by rogue states for illicit transactions. To preserve their reputation and protect their businesses, other banks shun the targeted institution, restricting the rogue's ability to finance proliferation or terrorist activities.