US swings sanctions stick at Turkish bank accused of smuggling Chinese oil payments to Iran in gold
The US Treasury's OFAC designated Istanbul-based Golden Global Yatirim Bankasi and two subsidiaries under Executive Order 13902 for facilitating shadow banking for Iran's IRGC. The bank denied the allegations. US Ambassador Tom Barrack stated the measure targets one entity, not Turkey, and noted Turkish government collaboration. The action is part of 'Operation Economic Outcast', an initiative to target sanctions evasion.
Why it matters: This action illustrates the theme of sanctions enforcement and its impact on third-country financial institutions.