The US Treasury Department warned on Monday that foreign financial institutions still doing business with Iran's sanctioned financial sector may be sanctioned without advance notice. The alert ties the threat to Washington's effort to cut Iran's financial lifelines during its continuing war with Israel and flags civil and criminal penalties for banks that let Iran reach the global financial system.
The US Treasury Department said on Monday it is alerting foreign financial institutions that continue to do business with Iran or its financial sector that they may be sanctioned by Washington without advance notice. According to Reuters: "could be targeted at any time without advance notification" — the warning Treasury issued to institutions still transacting with sanctioned Iranian financial institutions, which it said should move to end such activity and relationships.
Alert comes amid ongoing Iran war
Washington has tried to further cut Iran's financial lifelines during the Iran war that began on February 28, when the US and Israel attacked Iran and Tehran responded with its own strikes on Israel and Gulf states hosting US bases. US-Israeli strikes on Iran and Israeli attacks on Lebanon have killed thousands and displaced millions.
Iran was already heavily sanctioned before the war. However, Washington has warned other countries in recent weeks to cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system built around the dollar.
Penalties extend to correspondent accounts
Foreign institutions that help Iranian banks or their subsidiaries and branches in third countries reach the global financial system risk being sanctioned for operating in or supporting sanctioned sectors of Iran's economy, the Treasury Department said. They could also face civil and criminal enforcement penalties should Iran-related transactions cause US financial institutions or other US persons to violate sanctions.
Among the strict conditions Treasury warned it could impose is prohibiting a foreign institution from opening or maintaining US correspondent or payable-through accounts.
Source: Economy News
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