Iran routes $9 billion through US banks despite sanctions via hidden networks
Investigations reveal that roughly $9 billion linked to Iran passes each year through US banks by way of shell companies, foreign correspondent relationships and cryptocurrency, exposing a gap in Washington’s sanctions regime.
A recent investigation found that Iran continues to channel roughly $9 billion annually through US financial institutions, even as Washington intensifies its “Operation Economic Outcast” sanctions campaign. The money reaches American banks indirectly through foreign correspondent relationships, with front companies and cryptocurrency platforms obscuring the Iranian link. Iran’s oil, largely stored in tankers near Malaysia, is moved to China via ship-to-ship transfers and settled in Chinese yuan, allowing Tehran to bypass the dollar system.
Shell corporations in Hong Kong and Dubai funnel proceeds into dollars, euros and dirhams, while the IRGC uses crypto to purchase weapons and commodities. US authorities have targeted entities like Banque Misr’s UAE operations, which processed about $1.8 billion of potentially sanctioned transactions, but dismantling individual firms has not broken the broader shadow-banking network.
Why it matters
The story shows how Iran evades sanctions, keeping its economy and weapons programs funded despite US pressure.
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