US Treasury orders banks to flag Iranian money laundering networks

The US Treasury Department has directed financial institutions and banks to keep an eye out for potential Iranian money-laundering operations that utilize funds to illegally transport sanctioned oil via shell companies and cryptocurrency. On Monday, the Financial Crimes Enforcement Network (FinCEN) published a report highlighting warning signs, including the creation of new companies transferring unusually large amounts, payments processed through several intermediaries, and dealings associated with Iranian cryptocurrency firms. Additionally, banks should be vigilant for oil labeled as 'Malaysian blend' to mask its Iranian source, as well as missing or forged shipping documents and ship-to-ship transfers that hide the origin of the cargo. This initiative coincides with stalled US-Iran ceasefire discussions; President Trump remarked that the ceasefire is on 'life support' after dismissing Tehran's latest offer. The FinCEN report indicates that Iran-linked oil companies executed approximately $4 billion in transactions in 2024, empowering the global financial system to undermine Iran's efforts to evade sanctions.