Bessent Threatens to Cut Off Iran-Linked Groups from U.S. Dollar System

U.S. Treasury Secretary Scott Bessent has issued a warning to groups that help Iran launder money, stating they will be excluded from the U.S. dollar system. This move aims to cut off financial channels that facilitate Iranian oil transactions and convert them into money for potential use in repression.

In his prepared remarks on Monday, Bessent said, 'Let me be clear: any organization that facilitates money laundering on behalf of Iran will be excluded from the U.S. dollar system. The clock has just started ticking.' He emphasized that if these groups facilitate transactions and are part of the ecosystem that turns Iranian oil into money, they will be targeted.

The Treasury Department's press release used softer wording, stating that any organization facilitating money laundering or sanctions evasion 'risks being cut off from the U.S. financial system.'

Bessent also touched on the topic of Chinese banks allegedly helping Iran and stated that the best approach is 'quiet diplomacy,' but added that 'no one is above U.S. sanctions.' He noted, 'We are leveling the playing field with all countries to inform them of our expectations.' Bessent hinted at an impending announcement regarding sanctions against a financial institution, which should be expected by the end of this week.