US Warns Foreign Banks Over Iran Dealings, Threatens Sanctions

US Warns Foreign Banks Over Iran Dealings, Threatens Sanctions

The United States has warned foreign banks and other financial institutions that they could face sanctions if they continue conducting business with Iran or dealing with Iranian financial institutions already under US restrictions.

The US Department of the Treasury issued the warning on Monday, urging foreign financial institutions to immediately review and end transactions and business relationships involving sanctioned Iranian banks.

The Treasury said foreign financial institutions that continue dealing with sanctioned Iranian financial institutions could be targeted without prior notification.

The latest warning forms part of Washington’s broader campaign to restrict Iran’s access to the international financial system and disrupt channels that the US says are being used to bypass sanctions.

US authorities have increasingly focused on Iran’s financial networks, including what the Treasury describes as shadow banking arrangements designed to move money outside conventional banking channels.

The Treasury has urged foreign financial institutions to identify and avoid transactions connected to such networks as Washington increases economic pressure on Tehran.

The warning also places banks and financial institutions outside the United States under greater pressure to examine their dealings with Iranian entities subject to US sanctions.

Washington has previously used secondary sanctions to target foreign institutions and companies accused of supporting sanctioned Iranian entities or helping Tehran maintain access to international markets.

The US Treasury has also continued expanding measures targeting financial and other sectors linked to Iran. Its recent sanctions activity includes actions against networks that Washington says help Iran evade economic restrictions.

The latest warning comes amid heightened tensions between the United States and Iran, with Washington continuing efforts to increase economic pressure on Tehran.

Foreign banks with business links to Iran are now being urged to assess their exposure to sanctioned Iranian institutions and take steps to avoid activities that could trigger US penalties.

For financial institutions operating internationally, the warning reinforces the potential risks associated with maintaining relationships with Iranian banks or entities covered by US sanctions.