N環球 N GLOBE
United States · Economy / Sanctions

US Treasury warns foreign banks: keep dealing with sanctioned Iranian banks and face sanctions without notice

· N GLOBE

The US Treasury said on Oct 5 that foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification.

Why it matters

The US Treasury's Office of Foreign Assets Control (OFAC) issued an alert on Oct 5 warning foreign financial institutions that continuing to transact with sanctioned Iranian financial institutions means they "could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships." It is Washington's most direct warning yet to foreign banks since it stepped up its economic-isolation campaign against Tehran in late August.

Full report

The Treasury said Iran's government operates so-called "shadow banking" channels to circumvent US sanctions, and that foreign financial institutions should work to identify and avoid such activities. Ahead of the alert, the Treasury rolled out new sanctions covering Iran's financial, cryptocurrency, rail, automotive and manufacturing sectors, and took action against two banks — one in the United Arab Emirates and another in Turkey — over their alleged aid to the authorities in Tehran.

Since late August, Washington has intensified its campaign to economically isolate Tehran, warning allies they would face secondary sanctions if they kept doing business with the Iranian government. On Oct 1 the Treasury designated the Russia-linked "A7" shadow-banking network a transnational criminal organization and named Iran's rail and automotive industries as sanctions-risk sectors.

Background

The United States launched its war against Iran in late February 2026, demanding an end to all nuclear-related activities. The conflict has plunged the Middle East into violence, with Tehran's retaliatory action targeting Washington's Gulf allies and sending global energy and fertilizer prices sharply higher.

💬 Comments

No comments yet. Be the first!