The United States has warned foreign financial institutions that continue doing business with Iran or its financial sector that they could face sanctions without advance notice.
The US Treasury Department said foreign banks conducting transactions with sanctioned Iranian financial institutions could be targeted at any time. It urged institutions to immediately end such activities and financial relationships.
The warning is part of Washington’s broader campaign to restrict Iran’s access to the international financial system.
Foreign Banks Face Tougher US Restrictions
The Treasury said foreign financial institutions could face sanctions for helping Iranian entities access global financial networks.
This includes providing financial services to Iranian banks, their subsidiaries or branches operating in third countries.
Foreign institutions could also face civil or criminal enforcement action if Iran-related transactions cause US financial institutions or other US persons to violate American sanctions.
The Treasury warned that penalties could include restrictions on foreign banks’ access to the US financial system.
US Targets Iran’s Sanctions Evasion Networks
Washington has increased pressure on countries and institutions that maintain financial ties with Tehran.
The Treasury said foreign banks facilitating sanctions evasion could face serious consequences. Restrictions may include blocking institutions from opening or maintaining correspondent or payable-through accounts in the United States.
Such accounts are important for international banking transactions. Losing access could significantly affect a foreign bank’s ability to conduct business involving US financial institutions.
Last week, the Treasury sanctioned a Russia-linked shadow banking network that it said was helping Iran circumvent financial restrictions.
The US has also targeted Iranian military procurement networks and other sectors as part of its wider sanctions campaign.
Washington says these measures are designed to limit Tehran’s ability to access international finance and obtain resources through global financial channels.
The latest warning increases pressure on foreign banks to review and potentially end business relationships involving sanctioned Iranian financial institutions.
