By PAUL O’DONOGHUE, Senior Correspondent
THE U.S. Treasury has warned banks about Iranian networks using U.S. correspondent accounts to move illicit funds and support terrorist activity.
Correspondent banking allows banks in one country to access another country’s financial system by holding accounts with a local institution. This can allow those connected to the Iranian regime to access the U.S. financial system.
The U.S. has imposed broad sanctions on Iran’s financial sector, preventing most of the country’s banks from directly accessing the U.S. system in an effort to hinderTehran .
The warning came during a FinCEN Exchange with global financial institutions. The event was held as part of Operation Economic Outcast, the U.S. campaign targeting Iranian illicit finance.
“Today’s FinCEN Exchange gave the financial sector insight into the facilitators, and networks that provide Iran with access to U.S. correspondent banking relationships,” the Treasury.
It said this allows Iran and its allies to “launder funds, procure weapons, and bankroll regional terrorist activity”.
“Treasury officials and financial institution representatives engaged in a candid, productive conversation to share best practices and findings to protect the U.S. financial system from abuse and terrorism,” the Treasury said.
Treasury warning on Iran and US correspondent banking
Scott Bessent, the Secretary of the Treasury , said: “Treasury continues to sever every economic lifeline Tehran has left,” said
“Financial institutions are in lockstep with the U.S. government in support of Operation Economic Outcast.
“We will continue to work closely with the private sector in the fight against the murderous Iranian regime.”
Treasury described public-private information exchanges as “a key part of Operation Economic Outcast”.
It recommended that banks should review Treasury actions targeting Iranian illicit finance.
These including FinCEN’s relevant alerts, advisories, and financial trend analyses. They also include Iran-related sanctions administered by the Office of Foreign Assets Control.
The latest exchange builds on an April 2025 FinCEN event focused on Iran.
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