The US Treasury’s Financial Crimes Enforcement Network identified about $9 billion in potential Iranian shadow banking activity that flowed through US correspondent accounts in 2024, the department said on Thursday.
The Financial Trend Analysis (FTA) released by the Treasury’s Financial Crimes Enforcement Network (FinCEN) outlines how Iran used foreign companies and exchange houses to skirt sanctions and fund overseas operations, including oil sales and weapons procurement.
“Identifying Iran’s complex financial lifelines and shadow networks is an essential part of cutting off the funding for their military, weapons programs, and terrorist proxies,” FinCEN Director Andrea Gacki said. “By issuing this public analysis, we hope to draw attention to Iran’s shadow banking activity and encourage financial institutions to be vigilant,” she said.
The FTA forms part of US president Donald Trump’s maximum pressure campaign announced in February, aimed at denying Iran nuclear weapons and missile capabilities and curbing its regional influence.
FinCEN’s report is based on financial institution filings covering transactions made before the campaign’s launch, supplementing a June advisory on Iranian oil smuggling and procurement efforts. It highlights that shell companies outside the United States appear to play the largest role in the shadow banking network, accounting for roughly $5 billion of activity in 2024.
The report also found that Iran-linked oil companies, primarily based in the United Arab Emirates and Singapore, moved about $4 billion that year—likely tied to concealed oil sales. Meanwhile, entities suspected of technology procurement handled approximately $413 million in transactions linked to Iranian networks.
According to FinCEN, the network spans the UAE, Hong Kong, and Singapore, with Iranian front companies in sectors from shipping to investment. The findings stress how Tehran’s financial system relies on layers of intermediaries to maintain access to global markets despite sanctions.
The new analysis, the Treasury said, would assist US and foreign banks in tracing suspicious transfers and reinforcing compliance efforts.
