Wikiran exposes over 30 global banks that provide financial services to Iranian front companies and clients of Sepehr Energy Jahan. These banks, potentially unknowingly, have allowed for systemic international sanctions evasion and facilitated money laundering, shedding light on the complex and hidden relationships between banking institutions and entities tied to Iran’s Armed Forces. This raises alarming questions about the efficacy of global Anti-Money Laundering efforts.

In a shocking revelation, it has come to light that numerous banks across the globe, from China, United Kingdom and the UAE to Turkey and Switzerland are providing financial services to front companies and clients of Sepehr Energy Jahan, the trading arm of Iran's Armed Forces General Staff (AFGS). This association allows for sanctions evasion, money laundering and terror financing which could lead to severe legal and financial consequences for these banks and their shareholders. In this article, we not only expose the said bank accounts or the banks themselves but also trace the banks' correspondents in Euro and USD and the legal risks they face. The tables presented below list all the leaked bank accounts, organized by bank and country. Using the Front Companies Archives, you can look for the companies associated to these bank accounts, along with evidence of their sanctions evading transactions.

Banks in China

Banks in the UAE

Banks in Turkey

Other banks

Correspondent banks

Correspondent banks are financial institutions that provide banking services to other banks, often in a different countries or regions. They act as intermediaries between banks, facilitating international transactions, settlements, and payments clearing. For example, when one of Sepehr Energy Jehan's front companies makes a transaction in Euro from its account in Banque Misr in the UAE, it necessarily goes through one of Banque Misr's correspondents in Europe, such as Commerzbank or Standard Chartered. Below is a list of SEJ-related banks (hosting either their front companies or their clients' bank accounts) and their correspondents in Euro and USD. When a correspondent bank provides services to a bank that knowingly or unknowingly hosts accounts for sanctioned entities, it facilitates sanctions evasion, which can lead to serious legal consequences, including:

1. OFAC penalties: In the United States, the correspondent bank may face penalties for violating OFAC regulations, which prohibit transactions with sanctioned entities.
2. Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulatory breaches: By providing services to a bank that hosts sanctioned entities, the correspondent bank may breach AML/CFT regulations, which require financial institutions to identify and report suspicious transactions.
3. Regulatory fines and penalties: The correspondent bank may face fines and penalties from regulatory authorities in its home country or other jurisdictions where it operates.

If we examine this situation objectively, considering the evidence associated to these bank accounts and the companies they belong to, it appears that the banks have failed to fulfill their obligations to conduct enhanced due diligence, implement sanctions screening, and monitor and report suspicious transactions to their regulators. The correspondent banks, on the other hand, have failed in their mission to know your customer's costumer (KYCC) and generally understand their respondent bank, its business, reputation, and compliance programs, to assess the risks and to monitor the transactions to some extent. The international community and regulators must take notice of the banks exposed above. By providing services to entities associated with Sepehr Energy Jahan, these banks are not only facilitating sanctions evasion and money laundering but also undermining global efforts to curb illicit financial activities. It is imperative that these banks reassess their client base and comply with international sanctions and anti-money laundering regulations to avoid severe consequences, including legal action and reputational damage.

WikIran's exposure of these banking activities serves as a stark reminder of the ongoing battle against Iranian financial crimes, and the critical role that those financial institutions must play in preventing the misuse of the global financial system.