Iran-linked "shadow banking" moves billions via proxy accounts to skirt U.S. sanctions

BlockBeats reports that the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) recently identified roughly $9 billion in suspected Iran-linked "shadow banking" flows that passed through U.S. correspondent accounts in 2024. FinCEN estimates about $5 billion originated from overseas shell companies, while another $4 billion involved foreign oil firms suspected of serving as front entities for Iran. According to the report, Iran-related actors can tap the U.S. dollar system through intermediaries and correspondent banks in financial centers such as the UAE, Hong Kong, and Singapore, without maintaining direct accounts at U.S. banks. The networks are described as masking Iran ties via layered transactions that use shell companies, currency exchange services, and businesses spanning oil, shipping, investment, and technology. The report adds that Iran is increasingly turning to cryptocurrencies to evade sanctions. Reuters previously estimated Iran-linked crypto activity could reach $8 billion to $10 billion in 2025. The U.S. government has recently broadened secondary sanctions on Iran to cover digital assets, gold, technology, aviation, and shipping.