Billions of dollars linked to Iran are still passing through US banks every year, even though Washington has put strict sanctions against Tehran, according to a new report.
Iranian funds can enter the US banking system indirectly through foreign banks that have correspondent relationships with American lenders, The Wall Street Journal reported. This comes at a time when the Trump administration has stepped up sanctions against Iran. It has warned companies and countries that doing business with Tehran could lead to them being cut off from the US banking system. Iran has also turned to cryptocurrency. The Islamic Revolutionary Guard Corps (IRGC) has also used crypto exchanges to receive payments for oil, including from Chinese buyers. For this, Tehran has developed networks of shell companies and exchange houses in financial centres such as Hong Kong and Dubai.
The US Treasury identified around $9 billion in Iranian funds that moved through US banks in 2024, according to the investigation.
Researchers cited by the WSJ said Iran has used billions of dollars in cryptocurrency for trade and to get weapons and other goods. However, Iran still needs US currency and other major currencies to pay for imports, buy military equipment and support regional allies, according to Western officials cited in the report.
