- Treasury accuses Golden Global Yatirim Bankasi of helping transfer Iranian oil revenues through Turkey

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Latest action part of Trump administration’s “Operation Economic Outcast” aimed at cutting Iran’s financial lifelines

Washington, 05 September (H.S.): The Trump administration on Friday imposed sanctions on a Turkish financial institution as part of its latest effort to sever what it described as “critical financial lifelines” to the Iranian government.

The sanctions target Golden Global Yatirim Bankasi Anonim Sirketi, which the US Treasury Department accused of facilitating Iran’s efforts to move oil revenues from China to Turkey, where the funds could allegedly be converted into cash and gold.

The Treasury Department also alleged that the Turkish bank knowingly provided banking services to Iranian financial institutions, including entities that had already been sanctioned by the US in 2022 for allegedly facilitating Iran’s oil sales.

The action follows Treasury Secretary Scott Bessent’s launch last week of “Operation Economic Outcast”, a US effort aimed at isolating Iran from its remaining international trading partners and putting additional economic pressure on Tehran.

Bessent said financial institutions maintaining ties with Iran would face consequences under the campaign. He said the US hoped that no further banks would need to be sanctioned but warned that Washington would continue taking action with its allies and partners against entities supporting the Iranian government.

The latest sanctions come as the Trump administration seeks to pressure countries and financial institutions that continue to conduct business with Iran to reduce or end those ties.

However, the administration has so far been cautious about imposing sanctions on some major trading partners of Iran, including countries whose economic ties with Tehran could have wider implications for global trade and financial markets.

The US recently took measures against an Egyptian bank's operations in the United Arab Emirates but stopped short of imposing sanctions, highlighting Washington's reluctance to target some major financial and trading partners directly.

The Trump administration has also resumed military strikes in recent days, prompting Iranian retaliation in the region. The combined military and economic pressure comes as the administration faces challenges in seeking an end to the conflict with Iran and dealing with the impact of rising energy prices.

Golden Global Investment Bank, the institution targeted in the latest action, was founded in 2019 as Turkey's first investment bank offering banking services and alternative financing methods to foreign companies. The Istanbul-based institution says it aims to support Turkey's foreign trade, particularly in markets in neighbouring countries.

The Treasury announcement came a day after Turkey's state-run Halkbank announced that it had reached a settlement with the US Justice Department in a long-running case involving alleged violations of US sanctions on Iran.

The Halkbank case concerned allegations that approximately USD 20 billion in Iranian oil revenues had been moved through the bank in violation of US sanctions. US prosecutors had also alleged that senior Turkish government officials received millions of dollars in bribes to protect the scheme.

The case had contributed to tensions between Washington and Ankara, with Turkish President Recep Tayyip Erdogan personally lobbying the US administration to drop the proceedings.

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Hindusthan Samachar / Jun Sarkar