The Trump administration is sending letters to banks in four areas about handling Iranian money.
The letter obtained by FOX Business says the Treasury Department has evidence that banks in Oman, the UAE, Hong Kong and China have allowed Iranian funds used for illicit activities to be funneled through them.
A senior administration official not authorized to speak publicly says this is the first step to adding secondary sanctions on those banks, which would cut them off from the U.S. financial system.
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"Now is the time to finally disable Iran’s ability to support terrorism, threaten the region and global markets, and seek to continue its nuclear and ballistic missile program, which the U.N. has prohibited," the letter said.
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Treasury Secretary Scott Bessent on Tuesday warned companies and countries against paying Iran to transit the Strait of Hormuz because that opens them up to secondary sanctions. Bessent is leading the sanction charge in Operation Epic Fury.
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This letter is different, but shows the administration's willingness to up the ante and truly go after the Iranian money.
The U.S. waiver to sell Iranian oil at sea will expire on April 19.