US Warns Foreign Financial Institutions Against Doing Business With Iran
Washington intensifies economic pressure on Tehran, warning overseas banks that dealings with sanctioned Iranian entities could trigger penalties without prior notice.
Washington: The United States has warned overseas financial institutions that continuing to conduct business with Iran or entities in its banking sector could expose them to sanctions from Washington.
In an alert issued Monday, the US Treasury Department said foreign financial institutions dealing with Iranian banks already under American sanctions could face penalties without prior notice. It urged such institutions to immediately end transactions and relationships involving sanctioned Iranian financial entities.
The warning comes amid Washington’s intensified campaign to restrict Tehran’s access to the international financial system. Since late August, the United States has expanded pressure on countries and institutions maintaining economic links with Iran, cautioning that they could face secondary sanctions for transactions involving the Iranian government.
The Treasury has introduced a series of measures covering several parts of Iran’s economy, including finance, cryptocurrency, railways, automobiles and manufacturing. Authorities have also acted against banks based in the United Arab Emirates and Turkey over allegations that they provided assistance to Iranian authorities.
According to the Treasury, Iranian authorities have developed so-called “shadow banking” networks to bypass American restrictions and continue accessing international financial channels. Foreign financial institutions have therefore been advised to strengthen their monitoring systems and avoid activities that could expose them to sanctions.
The latest warning follows the escalation of hostilities between the United States and Iran, which has contributed to heightened instability across the Middle East. Iranian retaliatory attacks have targeted US allies in the Gulf, while disruptions to a major regional shipping route have pushed up international energy and fertiliser prices.
Washington’s latest measures reflect its broader effort to isolate Tehran financially and restrict the channels through which the Iranian government can access overseas funds and conduct international transactions.
