Iran bypasses US sanctions using correspondent banking networks

correspondent banking sanctions enforcement Iranian shadow banking US Treasury Department dollar-clearing accounts

Billions of dollars linked to Iran are moving through the United States financial system despite strict sanctions. According to reports citing Western officials and banking records, Iran utilizes the century-old correspondent banking system to gain indirect access to US dollar-clearing accounts.

Investigations indicate that Iranian entities use a complex network of front companies, currency exchanges, and business partners in jurisdictions like China and the United Arab Emirates to mask their identities. This allows transactions to be processed by foreign banks with US banking relationships without revealing the Iranian connection.

The US Treasury Department identified approximately $9 billion in Iranian-linked funds that moved through American banks in 2024. As part of increased enforcement, the Treasury has proposed cutting off the UAE branch of Egypt’s state-owned Banque Misr from US correspondent banking services, alleging the branch routed as much as $1.8 billion for companies potentially tied to Iranian shadow-banking networks.

Entities

Banque Misr · Citigroup · Iran · JPMorgan Chase · US Treasury Department · United Arab Emirates · United States · United States Department of the Treasury

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The US Treasury identified approximately $9 billion in Iranian-linked funds that moved through American banks in 2024. www.khabarfoori.com · www.siasat.com · freerepublic.com
[● 4 SOURCES] Iranian entities use front companies, currency exchanges, and business partners in jurisdictions such as China and the UAE to conceal their involvement in transactions. www.khabarfoori.com · melliun.org · www.siasat.com · freerepublic.com
[● 3 SOURCES] The US Treasury Department proposed cutting off the United Arab Emirates branch of Egypt’s state-owned Banque Misr from US correspondent banking services. melliun.org · www.siasat.com · freerepublic.com
[● 4 SOURCES] Iran accesses US dollar-clearing accounts indirectly through foreign banks that maintain correspondent banking relationships with American financial institutions. www.khabarfoori.com · melliun.org · www.siasat.com · freerepublic.com
[● 3 SOURCES] The UAE branch of Egypt’s state-owned Banque Misr routed as much as $1.8 billion through American correspondent accounts for companies potentially connected to Iranian shadow-banking networks. melliun.org · www.siasat.com · freerepublic.com