Iran Evades Sanctions Through US Banking System, Treasury Finds
A Wall Street Journal investigation has uncovered that Iran is moving billions of dollars through the American banking system, evading sanctions and laundering money on a large scale. The route runs through correspondent banking, which allows foreign banks to hold accounts at US institutions to move dollars.
The arrangement gives Tehran multiple ways into the global financial system, making detection difficult due to layered networks of shell companies and concealment methods. The Trump administration has been pressing American banks to tighten scrutiny of transactions linked to Iran.
A clear illustration came when the Treasury Department identified the United Arab Emirates arm of Egypt's state-owned Banque Misr as one of the institutions helping Iran reach the US banking system. Between January 2024 and June 2026, the bank's UAE branches processed roughly $1.8 billion for 103 companies potentially tied to Iranian shadow banking networks.
Treasury estimates that the operation is a critical node in the Iranian regime's access to US dollars. The measure is part of Operation Economic Outcast, aimed at tightening the economic squeeze on Tehran and forcing concessions to bring hostilities to a close.