US warns foreign banks over dealings with Iran

The U.S. Treasury Department said foreign financial institutions that conduct transactions with Iran could be added to the sanctions list without prior warning.

Operative Information Center-OMM reports that the department issued a statement on the matter.

The statement said foreign financial institutions that continue transactions with Iranian financial institutions under sanctions could face sanctions at any time and without prior warning.

“Foreign financial institutions that continue transactions with Iranian financial institutions under sanctions could face sanctions at any time, without prior warning. They should take immediate steps to end this activity and their ties with Tehran,” the statement said.

According to the U.S. Treasury, foreign financial institutions that facilitate Iran’s access to the global financial system by providing financial services to the country, including its banks, subsidiaries and branches in third countries, could face sanctions for supporting sectors of the Iranian economy subject to sanctions.

The department also said foreign financial institutions could face administrative and criminal penalties if Iran-related transactions cause U.S. financial institutions or other U.S. persons to violate sanctions.

The United States currently imposes economic sanctions on Iran in addition to conducting active military operations against it.