Overview
- A Treasury and FinCEN analysis found roughly $9 billion linked to Iranian shadow‑banking passed through foreign banks’ correspondent accounts that settle in U.S. banks during 2024.
- The Treasury launched Operation Economic Outcast in late August under Secretary Scott Bessent to cut Tehran’s shipping, finance and procurement networks out of the global financial system.
- Treasury has proposed blocking the UAE branch of Banque Misr from U.S. correspondent accounts after finding it processed about $1.8 billion for companies Treasury believes are tied to Iranian networks and the rule is open for a 30‑day public comment period.
- Iran sustains revenue and hides provenance by keeping millions of barrels in tanker storage, using ship‑to‑ship transfers and settling large oil trades in Chinese yuan while also moving value through cryptocurrency, and U.S. actions have included OFAC designations and more than $1 billion in crypto seizures.
- Officials warn that tighter controls on correspondent banking can make it harder for Iran to move money but may push banks and buyers toward yuan or crypto, complicating U.S. sanctions and affecting trade, procurement and regional security.