Media: Washington tracks new Iranian “shadow banking” activity

The US Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, has identified nearly $9 billion in parallel financial activity linked to Iran that moved through American bank accounts in 2024.

According to Asharq Al-Awsat, the findings were published on October 23 as part of a new analysis intended to support President Donald Trump’s “maximum pressure” campaign against Tehran.

The report revealed that Iran has been operating parallel banking networks involving local exchange companies inside the country and foreign intermediaries to evade US sanctions. These networks are used to sell oil abroad, launder money, fund regional proxies, and sustain Iran’s military and weapons development programs.

FinCEN Director Andrea Gacki said these shadow financial systems play a central role in Iran’s destabilising activities. She emphasised that identifying and disrupting such networks is an essential part of efforts to cut off funding for Tehran’s military and terrorist organisations.

The report details how Iran-linked networks operate across multiple continents through front companies, particularly in the United Arab Emirates, Hong Kong, and Singapore. These entities, which span the oil, investment, shipping, and technology sectors, conduct multi-billion-dollar transactions with partners who may or may not be aware of their illicit nature.

According to the report, foreign shell companies played the most significant role, processing transactions worth around $5 billion in 2024. FinCEN identified dozens of oil companies acting as Iranian fronts — most of them based in the UAE and Singapore — that collectively transferred nearly $4 billion last year.

The document also notes that Iran-linked technology procurement firms received approximately $413 million in payments for controlled technology acquisitions.

The analysis comes as the Trump administration intensifies its renewed “maximum pressure” campaign, relaunched in February, aimed at preventing Iran from developing nuclear weapons and ballistic missiles, while cutting off the regime’s funding sources for military operations and regional proxy groups.

By Tamilla Hasanova