US Treasury Warns Foreign Banks Over Iran Sanctions Without Advance Notice

U.S. Treasury warns foreign banks they could face sanctions without advance notice over dealings with sanctioned Iranian banks.

The U.S. Treasury Department has formally warned foreign banks that continue dealing with sanctioned Iranian banks they could face sanctions without advance notification, marking a sharper approach toward financial institutions that maintain ties with Iran.

According to Coin Bureau, the Treasury warning was reported by Reuters, which cited the department as saying foreign banks involved with sanctioned Iranian banks "could be targeted at any time without advance notification." The warning extends the potential sanctions risk to financial institutions outside the United States that continue to conduct business with sanctioned Iranian entities.

Shift in Treasury's Sanctions Approach

The warning represents a notable change from comments made in August by Treasury Secretary Scott Bessent. At that time, Bessent said imposing sanctions without warning could "blow up the global financial system," according to the Reuters report cited by Coin Bureau.

The latest warning therefore signals a more direct stance toward foreign banks that continue financial relationships with sanctioned Iranian banks. Treasury's statement indicates that those institutions could face action without being given advance notice.

Pressure on Iran's Economy and Crypto Channels

Iran's economy is already under pressure. Bessent said Iran loaded zero crude oil onto tankers last month, according to the information cited in the Coin Bureau post. The figure underscores the pressure being placed on Iran's oil-related economic activity alongside the broader financial sanctions campaign.

The Treasury's actions are also extending into cryptocurrency channels that Iran uses to circumvent sanctions. According to the post, the department is targeting Iran's crypto channels, including a Russia-linked network that Iran uses to evade sanctions.

Iran-linked cryptocurrency activity totaled roughly $10 billion last year, based on data from TRM Labs cited by Coin Bureau. The figure places crypto-related financial activity among the channels being examined as authorities increase pressure on Iran's ability to move funds outside traditional financial systems.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.