What did the US Treasury warn foreign banks about doing business with Iran?

The US Treasury warned that foreign financial institutions conducting transactions with sanctioned Iranian financial institutions could be targeted by US sanctions at any time without advance notification. It urged them to immediately terminate those activities and relationships.

Why is the United States targeting Iran’s shadow banking channels?

The Treasury said Iran’s government uses shadow banking channels to circumvent US sanctions. Foreign financial institutions were urged to identify and avoid those channels as Washington expands its campaign to economically isolate Tehran.

Which Iranian sectors has the US Treasury targeted with new sanctions?

The US Treasury has announced sanctions targeting Iran’s financial, cryptocurrency, rail, automotive and manufacturing sectors. It has also acted against banks in the United Arab Emirates and Turkey over alleged assistance to Iranian authorities.

US warns foreign financial institutions not to do business with Iran

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Summary

The United States warned foreign financial institutions in Washington on Monday that conducting business with Iran or its banking sector could result in sanctions. The US Treasury said institutions transacting with sanctioned Iranian banks could be targeted without advance notice and should terminate those activities. Washington said Iranian authorities use shadow banking channels to evade sanctions and urged foreign institutions to identify and avoid them.

Key Facts

Since late August, the United States has intensified efforts to economically isolate Iran by threatening secondary sanctions against countries and institutions continuing transactions with its government.
The US Treasury has targeted Iran’s financial, cryptocurrency, rail, automotive and manufacturing sectors through new sanctions.
The United States has taken action against two banks, one in the United Arab Emirates and another in Turkey, over alleged assistance to Iranian authorities.
The Treasury said Iran’s government operates shadow banking channels to circumvent US sanctions, requiring foreign financial institutions to screen for and avoid such activity.

By AFP

Published Oct 6, 2026 9:42 am KST

The US Department of the Treasury Building in Washington, DC, US, July 11. Reuters-Yonhap

WASHINGTON — The United States on Monday warned foreign financial institutions that if they conducted any business with Iran or its banking sector they could be sanctioned by Washington.

"Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships," the US Treasury said in an "alert" statement.

The United States launched its war against Iran in late February, killing the country's leadership and demanding it cease any nuclear-related activities.

The war has plunged the Middle East into violence, with Tehran's retaliatory action targeting Washington's Gulf allies and sending global energy and fertilizer prices skyrocketing after it virtually shut a key trading route.

Since late August, Washington has stepped up its campaign to economically isolate Tehran, warning its allies that they would be hit by secondary sanctions if they continued to conduct transactions with the country's government.

The US Treasury has also announced a slew of new sanctions as part of that push, targeting Iran's financial, crypocurrency, rail, automotive and manufacturing sectors.

It has also taken action against two banks -- one in the United Arab Emirates and another in Turkey -- over their alleged aid to the authorities in Tehran.

In Monday's statement, the Treasury said Iran's government operated so-called "shadow banking" channels to circumvent US sanctions, and that foreign financial institutions should aim to identify and avoid any such activities.

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