FinCEN: $9 Billion in Iranian Shadow Banking Had Possible Ties to US Accounts in 2024
The Treasury Department said Oct. 23 that it found about $9 billion in U.S.-related banking activity in 2024 that had possible ties to Iran's "shadow banking," which helps Iran-based exchange houses and foreign firms evade U.S. sanctions, sell oil and other commodities abroad, launder money and fund its military.
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The department's Financial Crimes Enforcement Network said the billions of dollars in potential Iran-related payments occurred through U.S. correspondent accounts, and the number is based on reporting from U.S. financial institutions to FinCEN. Andrea Gacki, the agency's director, said FinCEN hopes the analysis draws "attention" to Iran’s shadow banking activity and encourages financial institutions to be “vigilant.”
FinCEN said Iranian shadow banking networks mostly operate out of the United Arab Emirates, Hong Kong and Singapore through a "diverse array" of front companies, including oil, shipping, investment and technology procurement businesses. Those companies "transact billions of dollars with each other and with unrelated companies, who may be witting or unwitting counterparties."
Foreign shell companies operating outside the U.S. appeared to play the "largest role" in the Iranian banking networks, transacting about $5 billion in 2024, the agency said. FinCEN also found dozens of foreign oil companies that "appear" to be Iranian front companies that "transacted approximately $4 billion in 2024." Other technology procurement companies identified by the agency, which helped facilitate "Iranian procurement of export-controlled technology," carried out about $413 million in transactions in 2024, FinCEN added.