The United States has warned foreign financial institutions that doing business with Iran or its sanctioned banking sector could expose them to penalties from Washington.
The US Treasury Department issued the warning on Monday, urging foreign banks to immediately stop transactions with Iranian financial institutions already under US sanctions.
The Treasury said banks that continue such transactions could be sanctioned without prior notice.
“Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification,” the department said.
Washington has intensified its efforts to isolate Iran economically, warning foreign institutions that dealings with the Iranian government could attract secondary sanctions.
The Treasury has also imposed sanctions on Iran’s financial, cryptocurrency, rail, automotive and manufacturing sectors.
Two banks, one based in the United Arab Emirates and another in Turkey, have also been sanctioned over their alleged support for Iranian authorities.
According to the Treasury, Iran operates “shadow banking” networks to bypass US sanctions.
The department urged foreign financial institutions to strengthen measures to identify and avoid transactions linked to such networks.
