US Treasury finds $9 billion in Iran-linked funds moved through US banking system

September 6, 2026 at 12:45 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The US Treasury identified $9 billion in Iran-linked funds that moved through the US banking system in 2024, according to a Wall Street Journal report citing Western officials. Washington is tightening oversight of the shadow banking network, restricting Banque Misr's UAE branch access to US correspondent accounts on August 28. The crackdown comes even as Iran increasingly uses yuan and crypto assets to bypass sanctions.

Key Facts

The US Treasury identified $9 billion in Iran-linked funds that moved through the US banking system in 2024.
On August 28, the US Treasury restricted Banque Misr's UAE branch from accessing US correspondent accounts after it transferred up to $1.8 billion for companies possibly linked to Iranian networks.
Iran uses shell companies and exchange houses in Hong Kong and Dubai to conceal the origin of dollar transactions.
Washington's tightened oversight may complicate legitimate international payments and accelerate a shift to non-dollar payment systems.
Iran increasingly uses Chinese yuan and crypto assets to bypass sanctions but still needs dollars for some international trade and technology purchases.

Shadow Banking Network

The system centers on foreign financial institutions with correspondent relationships with US banks. Iran-linked funds reach the US banking system through shell companies and exchange houses that conceal their origin. The US Treasury identified $9 billion in such funds in 2024. Washington is tightening oversight of this shadow banking network.

Enforcement Actions

On August 28, the US Treasury restricted Banque Misr's UAE branch from accessing US correspondent accounts. The branch transferred up to $1.8 billion for companies possibly linked to Iranian networks, according to officials. Iran particularly uses shell companies and exchange houses in Hong Kong and Dubai for money transfers. This structure allows transactions to be completed in dollars while concealing the Iranian connection.

Sanctions Evasion Risks

Comprehensive restrictions on correspondent banking could complicate legitimate international payments. Such restrictions may accelerate a shift toward non-dollar payment systems. Iran increasingly uses Chinese yuan and crypto assets to bypass sanctions. Iran still needs dollars for some international trade and technology purchases.