Iranian-linked shadow banking flows reached $9 billion through U.S. banks in 2024.

Huo Xing Finance reports that on September 7, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently found that approximately $9 billion in suspected Iranian-linked “shadow banking” activities flowed through U.S. correspondent accounts in 2024, with about $5 billion originating from foreign shell companies and another $4 billion tied to foreign oil companies suspected of acting as front entities for Iran. The report notes that Iranian-related entities can access the U.S. dollar system through intermediaries and correspondent banks in financial hubs such as the UAE, Hong Kong, and Singapore without directly holding U.S. bank accounts. These networks use shell companies, currency exchanges, and layered transfers through oil, shipping, investment, and technology firms to obscure the connection to Iran. In addition to traditional financial channels, Iran is increasingly relying on cryptocurrencies to evade sanctions. Reuters previously estimated that cryptocurrency activities involving Iran could reach $8 billion to $10 billion in 2025. The U.S. government has recently expanded its secondary sanctions against Iran to include digital assets, gold, technology, aviation, and shipping sectors.