How billions in Iranian money passes through US banks
Despite U.S. sanctions, billions of dollars in Iranian funds continue to flow through the global financial system using U.S. correspondent banking accounts. The U.S. Treasury is attempting to crack down on foreign banks, such as Egypt's Banque Misr, that facilitate these transactions through complex shadow-banking networks.
Why it matters
This reveals a significant vulnerability in the U.S. sanctions regime and the difficulty of enforcing financial isolation on Iran.
Iran remains reliant on the American dollar for some types of international transactions. Summary Illicit Iranian funds are flowing through U.S.-dollar clearing accounts, creating an enforcement dilemma for Washington. Gift this article Check your portfolio This is a Mint Premium article gifted to you. Subscribe to enjoy similar stories.
As the Trump administration tightens its economic squeeze on Iran, it faces a surprising weak link in its campaign to cut off the regime from the global financial system: America’s own banks.
Billions of dollars of Iranian funds are flowing through clearing accounts at American banks each year, Western officials and researchers say, despite sanctions that prohibit anyone subject to U.S. law from taking part in almost all financial activity linked to Tehran.
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