A bombshell Treasury report has unmasked Iran’s shadow-banking network, revealing how shell companies in Dubai, Hong Kong, and Singapore helped Tehran move money through U.S. banks to fund oil sales, weapons procurement, and regional terror proxies.
According to the Treasury’s Financial Crimes Enforcement Network (FinCEN), approximately $9 billion flowed through U.S. correspondent accounts in 2024. In these schemes, Iranian entities used exchange houses, freight operators, and investment firms to conceal ownership, route payments through third countries, and gain limited access to the U.S. financial system despite heavy sanctions.
Investigators found that shell and front companies outside the United States accounted for roughly $5 billion of those transfers, primarily in the United Arab Emirates, Hong Kong, and Singapore. Another $4 billion was traced to oil firms tied to Iran’s energy sector, operating under foreign names to disguise shipments and revenue. In addition, $413 million in transactions were linked to technology-procurement networks believed to support Iran’s weapons and aerospace industries.
However, the $9 billion figure represents only a fraction of Iran’s total illicit activity, with officials warning that much larger sums likely move through non-U.S. clearing systems and unregistered intermediaries beyond the reach of Western regulators.
“Identifying Iran’s complex financial lifelines and shadow networks is an essential part of cutting off funding for their military, weapons programs, and terrorist proxies,” said FinCEN Director Andrea Gacki. “By issuing this public analysis, we hope to draw attention to Iran’s shadow-banking activity and encourage financial institutions to be vigilant.”
The FTA forms part of President Trump’s maximum-pressure initiative, launched in February to block Iran’s path to nuclear weapons and curb its regional influence.
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