US sanctions Turkish bank, two subsidiaries in bid to increase economic pressure on Iran

What Happened

The U.S. Treasury Department's Office of Foreign Assets Control on Friday imposed Iran-related sanctions on Istanbul-based investment bank Golden Global Yatirim Bankasi Anonim Sirketi, asset manager Golden Global Portfoy Yonetimi Anonim Sirketi, and asset leasing company Golden Global Varlik Kiralama Anonim Sirketi. The three entities were placed on the OFAC Specially Designated Nationals list, cutting them off from the dollar-based financial system, and Treasury issued a general license allowing wind-down of transactions. Treasury Secretary Scott Bessent said the action "is code for you are out of business" and that Treasury will probably sanction another bank next week. Treasury alleges Golden Global was established to enable Iran's shadow banking network to transfer oil revenues from China to Turkey, where they could be converted to cash and gold by money exchangers. Treasury further said Golden Global knowingly offered correspondent banking services to Iranian financial institutions, enabling transactions through accounts controlled by the Islamic Revolutionary Guard Corps Qods Force and its proxies.

Key Actors

Why It Matters

The action expands Washington's economic pressure campaign from Iranian entities to foreign financial institutions in Turkey and the UAE that allegedly facilitate Iran's oil revenue conversion and IRGC-linked transactions. It signals an escalation in secondary sanctions intended to disrupt Iran's shadow banking network, though sanctions expert Brett Erickson cautioned the move may only marginally increase pressure on Iran and could draw retaliation that damages the global economy.

Watch For

Bessent said another bank will probably be sanctioned next week and that Treasury is likely to issue new secondary sanctions weekly, initially targeting banks. Monitor OFAC SDN list updates for newly designated financial institutions, responses from Golden Global or Turkish regulators, possible Iranian retaliation in energy markets or proxy activity, and whether the wind-down general license alters correspondent banking relationships with Turkey.