FinCEN: Suspected Iran-linked "shadow banking" moved about $9 billion through U.S. correspondent accounts in 2024

Huo Xing Finance reported on Sept. 7 that the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) recently concluded that roughly $9 billion in suspected Iran-linked "shadow banking" transactions flowed through U.S. correspondent accounts in 2024. FinCEN said about $5 billion was traced to foreign shell companies, while another $4 billion was linked to overseas oil firms suspected of serving as front entities for Iran. The finding underscores how Iran-related actors can tap the U.S. dollar system indirectly via intermediaries and correspondent banks in major financial hubs including the UAE, Hong Kong and Singapore, without holding U.S. bank accounts. According to the report, these networks rely on shell companies, currency exchanges and layered transfers routed through oil, shipping, investment and technology businesses to mask ties to Iran. Beyond traditional channels, Iran is increasingly turning to cryptocurrencies to bypass sanctions. Reuters has previously estimated that crypto activity involving Iran could reach $8 billion to $10 billion in 2025. The U.S. government has recently broadened its secondary sanctions framework against Iran to cover digital assets as well as the gold, technology, aviation and shipping sectors.