US signals major sanctions on financial institutions assisting Iran

U.S. Treasury Secretary Scott Bessent warned Monday, August 24, that any group helping Iran launder money faces expulsion from the U.S. dollar system.

“Let me clear: Any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking,” Bessent said during his prepared remarks.

Addressing sanctions, he added: “If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted.”

In a press release, the Treasury Department used somewhat softer language, stating that entities facilitating money laundering or sanctions evasion “risks being cut off from the US financial system.”

Asked if Chinese banks could face secondary sanctions for allegedly aiding Iran, Bessent advocated for “quiet diplomacy,” but warned that “no one is above the reach of US sanctions.”

“We are level-setting with every country to tell them our expectations,” Bessent said. “We know who they are. They know who they are. So when the hammer of US Treasury actions falls upon them, they will have no one to blame but themselves.”

Bessent said a major sanctions announcement targeting an unspecified financial institution is expected by the end of this week.

By Tamilla Hasanova