Treasury Department tells US banks to flag suspected Iranian money-laundering networks

May 11, 2026 - 19:51

WASHINGTON (AP) - The Treasury Department has issued a directive telling American banks and financial institutions to actively monitor and report any transactions linked to suspected Iranian money laundering networks. These networks are believed to be using the U.S. financial system to move funds tied to the smuggling of sanctioned Iranian oil.

The new guidance, released by the Treasury's Financial Crimes Enforcement Network, or FinCEN, warns that Iran continues to rely on a web of front companies, shell entities, and currency exchangers to obscure the origin of its oil revenues. These illicit funds often pass through accounts at U.S. banks, sometimes in small, layered transactions designed to avoid detection.

Officials say the goal is to cut off the financial lifelines that allow Iran to bypass international sanctions. The advisory specifically flags patterns such as payments from countries that are known transshipment points for Iranian crude, or transactions involving entities previously blacklisted by the U.S.

Banks are now expected to file suspicious activity reports if they encounter any of the red flags outlined in the notice. The Treasury emphasized that even indirect involvement with these networks could expose financial institutions to legal risk. The move is part of a broader effort to tighten the noose on Iran's energy sector, which remains a key source of revenue for the regime.