US Treasury warns foreign financial institutions of sanctions risks linked to Iran and China
The US Treasury has warned global banks that facilitating transactions for Iran could trigger secondary sanctions, specifically targeting operations in China.Summary
US Treasury Secretary Scott Bessent has issued a stern warning to foreign financial institutions, signaling that those facilitating business with Iran face the threat of US secondary sanctions. Utilizing expanded authority under Executive Order 14114, the Office of Foreign Assets Control (OFAC) is targeting banks globally, with two Chinese institutions reportedly already under scrutiny for their Iranian transaction links.
Secondary sanctions allow the US to cut off foreign banks from the American financial system if they process transactions involving sanctioned entities, regardless of whether those payments touch US soil. As a result, banks in regions including Turkey, the UAE, and Central Asia are increasingly restricting payments to avoid punitive measures, reflecting OFAC's ongoing commitment to rigorous enforcement and financial isolation of sanctioned regimes.
(Source：Crypto Briefing)