US Treasury warns foreign banks on Iran business, may sanction without notice

(Adds details from Treasury's alert, context of recent US actions and Iran war) By Kanishka Singh WASHINGTON, Oct 5 (Reuters) — The US Treasury Department said on Monday it was alerting foreign financial institutions that continue to do business with Iran or its financial sector that they may be sanctioned by Washington without advance notice. Details: "Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships," the Treasury Department said in its alert.

Washington has attempted to further cut Iran's financial lifelines during the Iran war that ​began on February 28 when the US ​and ⁠Israel attacked Iran and Tehran responded with its own strikes on Israel and Gulf states that host US ⁠bases. US-Israeli strikes ​on Iran and Israeli attacks ​on Lebanon have killed thousands and displaced millions. Iran was already heavily sanctioned by the US before the war but Washington has warned other countries in recent weeks to ‌cut their business ties with Iran or risk having key companies and entities cut off from the dollar-based financial system.

Foreign financial institutions facilitating Iran's access to the global financial system, including by providing financial services to Iranian banks or their subsidiaries or branches in third countries, risk being sanctioned for operating in or supporting sanctioned sectors of Iran's economy, the Treasury Department alert said. They could also be subject to civil and criminal enforcement penalties should Iran-related transactions cause US financial institutions or other US persons to violate sanctions, the Treasury Department added. S. com; +12024508248;)