The United States warned foreign financial institutions on Monday that they could face sanctions without advance notice if they continue doing business with Iran or its financial sector, as Washington intensifies efforts to isolate Tehran from the global financial system.
The US Treasury Department said banks and other financial institutions dealing with sanctioned Iranian entities should immediately end those relationships or risk being targeted by American sanctions.
“Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification,” the Treasury said in an alert.
The warning marks another step in Washington’s effort to tighten financial pressure on Iran during the ongoing war, which began on February 28 after US and Israeli forces attacked Iran and Tehran responded with strikes against Israel and Gulf states hosting US military bases.
Iran was already subject to sweeping US sanctions before the conflict, but Washington has increasingly warned governments, companies and banks in recent weeks that continued business with Tehran could result in exclusion from the dollar-based financial system.
The Treasury said foreign financial institutions could face sanctions if they provide financial services to Iranian banks, their subsidiaries or branches operating in third countries, or otherwise support sectors of Iran’s economy already under US restrictions.
Institutions could also face civil or criminal penalties if Iran-related transactions cause US banks or other American persons to violate sanctions.
Among the measures Washington could impose is a ban on foreign banks opening or maintaining correspondent or payable-through accounts in the United States, effectively restricting their access to the US financial system.
The latest warning comes as Washington seeks to further reduce Iran’s access to international financing and pressure overseas institutions to cut remaining commercial and banking links with Tehran.
