WASHINGTON—Today, U.S. Secretary of the Treasury Scott Bessent led a public-private partnership event with 16 systemically important global financial institutions and federal law enforcement agencies, focused on denying Iran access to the global financial system. This event was the first in FinCEN’s “Iran Maximum Pressure and Counter Terrorism” (or IMPACT) Exchange series. The event focused on Iran’s sprawling global oil and “shadow banking” networks.
This type of public-private information exchange is a key part of Treasury’s role in implementing President Trump’s National Security Presidential Memorandum-2 (NSPM-2). NSPM-2 states that it is the policy of the United States to enact maximum pressure on the Islamic Republic of Iran to end its nuclear threat, curtail its ballistic missile program, and stop its support for terrorist groups.
“As Treasury Secretary, I want to assure the American people that I am fully committed to using every available tool to prevent Iran and its terrorist proxies from gaining access to the U.S. dollar and the broader international financial system,” said Treasury Secretary Scott Bessent. “Iran continues to conduct its foreign exchange activities through a covert shadow banking network, and my message to financial institutions worldwide is unequivocal: safeguard your institutions from being exploited by this malign network, so you can continue to serve your legitimate clients with integrity.”
Today’s FinCEN Exchange event enabled the financial sector to better understand challenges in complying with U.S. sanctions on Iran and Iran’s global oil and “shadow banking” sanctions evasion networks. Shadow banking networks are multi-jurisdictional illicit finance systems that grant sanctioned Iranian entities access to the international financial system and obfuscate Iran’s trade with foreign customers. Leaders from financial institutions, law enforcement agencies, and Treasury engaged in robust conversation to share best practices and investigative findings to protect the U.S. financial system from abuse and terrorism.
Click here to read Secretary Bessent’s remarks from the event.
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The FinCEN Exchange program is a statutorily authorized voluntary public-private partnership that convenes relevant stakeholders, including law enforcement agencies and financial institutions. The program aims to protect our national security and our citizens from harm by combatting money laundering and its related crimes, including terrorism, through public-private dialogue that encourages, enables, and acknowledges industry focus on high-value and high-impact activities. The program began in 2017 and was codified as part of the Anti-Money Laundering Act of 2020.