U.S. warns banks in China, Gulf over Iran ties, threatens secondary sanctions

SABN

RIYADH/WASHINGTON, April 14 - The U.S. Treasury Department has warned financial institutions in China, Hong Kong, the United Arab Emirates and Oman about the risks of doing business with Iran, and threatened secondary sanctions against banks that continue to support Iranian activities, according to a letter seen by the Associated Press.

The letter accused the jurisdictions of allowing Iranian illicit financial activity to pass through their institutions and said Iran had processed at least $9 billion through U.S. correspondent accounts in 2024 using a network of front companies.

It said many of those entities were based in Hong Kong and the United Arab Emirates.

In a post on X on Tuesday, the Treasury Department said financial institutions should be on notice that it was using the full range of available tools and authorities and was prepared to impose secondary sanctions on foreign banks that continued to support Iran's activities.

The warning marks a further escalation in Washington's financial pressure campaign against Tehran as tensions remain high across the region.

There was no immediate response from authorities in China, Hong Kong, the UAE or Oman.