World News

Treasury tightens banking sanctions on Iran

WASHINGTON (Reuters) - The U.S. Treasury on Thursday moved to cut Iran off from one of the last available entry points to the U.S. financial system by revoking its license for “U-turn” bank transfers, which briefly enter the United States before being sent to offshore banks.

The Treasury said the action was aimed at increasing financial pressure on Tehran to end alleged support of terrorist groups and nuclear and missile proliferation.

The move bans U.S. banks from handling such transfers made on behalf of Iranian entities by non-Iranian offshore banks.

“This regulatory action will close the last general entry point for Iran to the U.S. financial system,” the Treasury said in a statement.

Reporting by David Lawder