Updated

Updated · POLITICO · Aug 26

Lawmakers Press Trump to Sanction Chinese Banks With $25 Trillion in Assets Over Iran

Updated

Updated · POLITICO · Aug 26

Lawmakers Press Trump to Sanction Chinese Banks With $25 Trillion in Assets Over Iran

Q: Which major global bank is secretly on the chopping block as the U.S. prepares to sever Iran's covert financial lifelines?

No bank has been publicly identified. Treasury Secretary Scott Bessent said only that a “major foreign financial institution” could be sanctioned soon, but he did not name it, and the reporting does not confirm any specific global bank is “secretly on the chopping block.” The strongest publicly cited candidate in the broader expert and media discussion is China’s Bank of Kunlun. Sanctions specialists interviewed in related coverage said it should be “at the top of the list” because of its history handling Iran-linked transactions and because the U.S. already cut it off from the dollar system in 2012 over Iran-related activity. That makes it the clearest name associated with potential next-step enforcement. At the same time, lawmakers are pressing the administration to go further and consider any Chinese bank that knowingly facilitates Iranian oil payments, especially for purchases by China’s independent “teapot” refineries. Treasury has also reportedly warned two Chinese banks that they could face sanctions if Iranian funds are found moving through their accounts, but those banks were not named publicly. So the accurate answer is that the bank has not been officially disclosed. If one institution stands out from the available reporting, it is Bank of Kunlun, but that remains informed speculation rather than a confirmed Treasury designation.

3 articles · Updated · POLITICO · Aug 26

Bipartisan lawmakers are urging the Trump administration to make Chinese banks the next target in its Iran sanctions drive, arguing they help sustain Tehran’s finances and shipping attacks in the Strait of Hormuz.
Treasury widened sanctions authority Monday to five Iranian sectors and Bessent said a major foreign financial institution could be hit by week’s end, but the first designations stopped short of naming any Chinese bank.
Chinese state banks are seen as conduits for payments tied to Iran’s oil sales to China’s teapot refineries, which buy about 90% of Iran’s exported crude, often through smaller provincial banks and Hong Kong-linked subsidiaries.
Sanctioning one of China’s biggest lenders could jeopardize a fragile U.S.-China trade truce and Trump’s planned Xi summit next month, while risking wider financial disruption because the four largest state banks hold an estimated $25 trillion in assets.
The push reflects growing congressional anger six months into the Iran war, even as some lawmakers warn any move against Chinese banks must be paired with plans for retaliation on trade, rare earths and supply chains.