US Justice Department Probes Whether Major Banks Handled Funds Tied to Iran’s Khamenei

The U.S. Justice Department is investigating whether major American financial institutions were involved in handling funds tied to Ayatollah Seyed Mojtaba Khamenei, Iran’s supreme leader, as part of a broader probe into suspected corruption and money laundering, Bloomberg reported on June 18.

The investigation is focused on whether major U.S. banks were involved as money linked to Khamenei moved through the international financial system, according to the report.

The probe includes large transfers between companies that Khamenei is believed to effectively control. The department has not ruled out the possibility that Wall Street banks, including JPMorgan, were involved in processing those transactions.

People familiar with the matter said the inquiry also covers some banks in Europe and the Middle East, in addition to U.S. financial firms.

Investigators plan to trace the path of funds tied to Khamenei and examine whether U.S. financial institutions properly carried out know-your-customer, or KYC, and anti-money laundering, or AML, procedures.

Bloomberg said the opening of the investigation does not necessarily mean criminal charges or sanctions will follow.

The Justice Department is also reviewing how suspected shell companies linked to Khamenei bought overseas real estate. Investigators are focused in particular on indications that those companies used funds to acquire hotels and high-end residential properties.

According to the report, Khamenei has long faced allegations that he managed assets under the name of financier Ali Ansari. Paper companies run by Ansari bought luxury hotels and expensive homes across Europe. Those acquisitions are said to have included hotels operating under the Hilton brand.

The allegations come as the U.S. maintains tough financial sanctions on Iran, effectively cutting Iranian companies and key officials off from international financial transactions. Washington suspects Iran may have built separate financial networks and managed overseas assets to bypass those sanctions.

Bloomberg reported that the investigation was advancing alongside a U.S. strategy of economic pressure on Iran at a time when Washington and Tehran were negotiating an end to the war. That has prompted speculation that the U.S. may have sought to track the flow of Khamenei-linked funds as a source of leverage in the talks.

At the same time, recent progress in peace negotiations between the U.S. and Iran has made the investigation itself diplomatically sensitive.

One official told Bloomberg that the closer the two countries come to a tentative peace agreement, the greater the diplomatic fallout from the investigation becomes.

Kim Ju-wan, Hankyung.com reporter kjwan@hankyung.com