US targets Turkish bank with sanctions over Iran Revolutionary Guard ties

The United States Treasury Department added the Turkish bank to its sanctions list, accusing the financial institution of serving as a conduit for payments connected to the IRGC, designated by Washington as a terrorist organization. According to US officials, the bank processed transactions worth millions of dollars on behalf of entities with ties to the Iranian military force, circumventing existing American sanctions regimes.

The designation represents an escalation in American efforts to enforce financial isolation of Iran and its military apparatus. Turkish officials have contested the sanctions, signaling their intention to challenge the decision through legal channels and diplomatic means. The dispute underscores ongoing tensions between Washington and Ankara over Iran policy and Turkish banking sector oversight.

The sanctions prohibit US entities and individuals from conducting business with the targeted bank and freeze any assets it holds within American jurisdiction. Financial institutions worldwide typically comply with US Treasury designations to avoid secondary sanctions and maintain access to the dollar-denominated global financial system.

Turkey, a NATO ally, has maintained complex economic and diplomatic relations with Iran despite international sanctions frameworks. Turkish officials argue they have implemented rigorous compliance measures and disputed allegations that banking institutions under their supervision have facilitated illicit transactions.