US sanctions Turkish bank over alleged IRGC ties

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) placed sanctions on Turkey’s Ziraat Bank on Tuesday, accusing the state‑owned lender of acting as a conduit for the Islamic Revolutionary Guard Corps (IRGC) by processing millions of dollars in transactions that benefitted Iran. The designation adds Ziraat Bank to the Specially Designated Nationals list, bars U.S. persons from dealing with the institution and freezes any assets the bank holds under U.S. jurisdiction.

According to the Treasury, Ziraat Bank’s correspondent accounts and payment‑processing services were used to move funds for the IRGC, circumventing existing Iran‑related sanctions and supporting the militia’s regional activities. The move follows a broader U.S. effort to tighten financial pressure on entities that enable Iran’s weapons programs and destabilizing operations. The sanctions are expected to restrict the bank’s access to the international banking system, compel compliance reviews by foreign partners, and could heighten diplomatic friction between Washington and Ankara as both sides assess the economic and political ramifications.