US Treasury Cracks Down on Turkish Bank Network Tied to Iranian Military Financing

The US Treasury's Office of Foreign Assets Control designated Istanbul-based Golden Global Investment Bank and its subsidiaries under Executive Order 13902. This move, part of Operation Economic Outcast launched by Treasury Secretary Scott Bessent in late August, targeted a financial channel used to move restricted energy capital for Iranian state military operations.

The bank converted Iranian oil proceeds into foreign currency through shell companies that masked beneficial ownership. These funds were then laundered into gold and physical currency, providing tens of millions of dollars for the IRGC Quds Force's military operations.

Sıtkı Ayan, a Turkish businessman designated by OFAC in 2022, managed the network that used Golden Global Investment Bank to obtain correspondent banking services closed to sanctioned entities. This allowed Iranian state entities to monetize crude oil exports under the guise of routine trade while shielding primary transactions from Western regulators.

The Treasury's action established a clear precedent for secondary sanctions, with Secretary Bessent warning that any foreign financial institution clearing transactions for sanctioned Iranian entities faces immediate exclusion from the US dollar system. This move eliminated the assumption that political alignment provides immunity from compliance enforcement.