US Treasury Warns Global Banks Against Doing Business with Iran
The US Treasury warned global financial institutions against ties with Iran, threatening immediate sanctions for non-compliance under the Economic Outcast operation.
The United States Department of the Treasury has issued a severe warning to financial institutions worldwide regarding business ties with Iran. In an announcement on Monday, the Treasury made it clear that foreign banks continuing transactions with sanctioned Iranian entities could face American penalties at any time and without prior notice.
The warning was published as part of the Economic Outcast operation, in which Washington calls on financial institutions to immediately sever activities and ties with relevant Iranian bodies. The Treasury clarified that services provided to Iranian banks through branches or subsidiaries in third countries could also expose the involved entities to punitive measures.
Washington further warned against transactions that might cause American citizens or companies to violate the sanctions regime. In such cases, the department noted, there could be civil and even criminal consequences.
The initiative aims to target the Iranian regime's shadow banking networks. According to Washington, these networks utilize front companies and complex financial structures to transfer and launder revenues from oil and commodity sales while concealing their connection to Iran.
Earlier on Monday, US Treasury Secretary Scott Bessent claimed the operation is already yielding results. In a post on X, he wrote that the Iranian rial has plummeted to a historic low and that Iran did not load crude oil onto tankers over the past month.
