US sanctions fail to block Iran's funds: Around $90 billion in 'shadow banking' funds still flow through US banks
53 minutes ago
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) recently analyzed and found that roughly $9 billion in shadow banking activity suspected to be linked to Iran flowed through U.S. correspondent bank accounts in 2024. Of that total, around $5 billion originated from foreign shell companies, while another $4 billion involved foreign oil enterprises suspected of acting as Iranian front companies. The report noted that Iranian-linked entities do not need to hold direct U.S. bank accounts to access the U.S. dollar system, instead using intermediaries and correspondent banks in financial hubs such as the UAE, Hong Kong, and Singapore. These networks layer transfers through shell companies, exchange firms, and entities in sectors including oil, shipping, investment, and technology to obscure the funds’ ties to Iran. Beyond traditional financial channels, Iran is increasingly relying on cryptocurrency to evade sanctions. Reuters previously estimated that Iran-related cryptocurrency activity reached $8 billion to $10 billion in 2025. The U.S. government has recently expanded the scope of its secondary sanctions on Iran, including sectors such as digital assets, gold, technology, aviation, and shipping.
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