Banking on the dollar: How Iran keeps $9bn flowing through US banks despite sanctions
A Wall Street Journal investigation reveals that billions of dollars in Iranian funds continue to flow through US banks via foreign correspondent relationships. Despite strict sanctions, Iran utilizes front companies and ship-to-ship oil transfers to maintain revenue streams.
Why it matters
This highlights a significant loophole in international financial sanctions, complicating US efforts to exert economic pressure on Iran.
The US is trying to squeeze Iran out of the global financial system. But a Wall Street Journal investigation has found that billions of dollars linked to Iran still pass through US banks each year, exposing a striking weakness in Washington’s sanctions campaign.Iranian funds can reach American banks indirectly through foreign financial institutions that maintain correspondent-banking relationships with US lenders. Front companies and currency exchanges can disguise the Iranian connection before dollar transactions reach US banks for settlement, the report said.The scale is significant.
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