U.S. Treasury identifies $9 billion in Iran-linked funds passing through U.S. banks

The U.S. Department of the Treasury has identified significant vulnerabilities in its efforts to isolate Iran from the global financial system. Despite sanctions, approximately $9 billion in funds related to Iran passed through U.S. banks in 2024. This occurs primarily through the correspondent banking system, where Iran accesses U.S. dollars indirectly via foreign financial institutions.

As part of ‘Operation Economic Outcast,’ U.S. authorities have increased pressure on financial institutions to monitor transactions linked to Iranian underground banking networks. On August 28, the Treasury Department restricted the UAE branch of Egypt’s state-owned Banque Misr from accessing U.S. bank accounts. Officials allege this branch processed $1.8 billion for companies potentially linked to Iran.

While the specific U.S. banks holding the accounts for Banque Misr UAE were not named by the Treasury, the bank’s own website lists JPMorgan Chase and Citigroup as correspondent banking partners. Both banks declined to comment on the Treasury's actions. Egypt stated it is discussing the allegations with Washington, while Banque Misr affirmed its commitment to legal and regulatory frameworks.