FinCEN Identifies $9 Billion in Iranian Shadow Banking Activity During 2024

The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has released a new Financial Trend Analysis (FTA) revealing around 9 billion dollars in potential Iranian shadow banking activity that passed through US correspondent accounts in 2024. The findings, based on reports from US financial institutions, underscore the scale and sophistication of Tehran’s global sanctions evasion operations.

According to FinCEN, Iran’s shadow banking network uses a web of Iran-based exchange houses and foreign companies to bypass sanctions, sell oil and other commodities abroad, launder illicit funds, and finance its regional proxy groups and weapons programmes. These activities are coordinated through front companies and intermediaries spanning the United Arab Emirates, Hong Kong, and Singapore. The entities involved include shell firms, oil and shipping companies, investment vehicles, and technology procurement businesses—many of which transact with both complicit and unwitting counterparties worldwide.

FinCEN Director Andrea Gacki emphasised the importance of identifying and dismantling these financial networks, stating:

Uncovering Iran’s complex financial lifelines is critical to cutting off funding for its military, weapons development, and terrorist proxies. This analysis aims to heighten awareness and ensure vigilance across the financial sector.

The report builds upon the Treasury’s wider effort to enforce President Trump’s “maximum pressure” campaign, launched on 4 February 2025, which seeks to deny Iran access to nuclear and missile capabilities, curb its regional aggression, and restrict funding to its proxy organisations.

FinCEN’s analysis incorporates case studies and data visualisations to illustrate how Iran continues to exploit international financial systems. Key findings include:

• Foreign shell companies dominate Iran’s shadow banking activity, moving approximately 5 billion dollars in 2024 through non-US jurisdictions.

• Iran-linked oil companies conducted about $4 billion in transactions, much of it likely tied to illicit oil sales. Many of these companies are based in the UAE and Singapore.

• Technology procurement firms linked to Iran processed around $413 million, potentially to acquire export-controlled technologies in support of Iran’s weapons programmes.

FinCEN’s report supplements its June advisory on the Iranian regime’s illicit oil smuggling and procurement activities, providing additional insights into how Tehran’s shadow banking networks continue to evolve. The findings are intended to support financial institutions in detecting and reporting suspicious activity linked to Iranian entities, strengthening the global effort to counter illicit finance.

Read the press release here.