US Sanctions Turkish Bank, Prompting Legal Threat
The United States Treasury Department has imposed sanctions on Turkey’s Golden Global Yatirim Bankasi and two of its subsidiaries, accusing the financial institutions of helping Iran move money through an international network linked to the Islamic Revolutionary Guard Corps-Qods Force. The action was announced on September 4 as Washington intensifies its economic pressure on Tehran.
US authorities allege that Golden Global Bank facilitated tens of millions of dollars in transactions for the IRGC-Qods Force and provided Iranian authorities with banking access to transfer funds internationally. Washington also claims the bank was involved in a system used to move Iranian oil revenues from China into Turkey, with transactions involving cash and gold.
The three entities have been added to the US Treasury’s Specially Designated Nationals list. This effectively cuts them off from the US financial system and exposes other financial institutions to significant sanctions and compliance risks if they continue prohibited dealings with the designated entities.
Golden Global Bank has strongly rejected the US allegations. The bank said it complies with both Turkish and international banking regulations and argued that the individuals and entities identified in the US sanctions decision were not, and had never been, its customers.
The Turkish lender has also threatened legal action against the US decision. It said it would use all available rights of objection and legal remedies to challenge what it described as unfounded allegations.
The dispute adds a new layer of tension to US-Turkey relations. The sanctions are particularly sensitive because Turkey is a NATO member and has extensive financial and commercial links with both Western economies and countries in the Middle East.
US Ambassador to Turkey Tom Barrack sought to limit the diplomatic fallout, saying the measure targets one financial institution rather than Turkey’s financial system as a whole. He argued that the action should not be interpreted as a broader judgement against the Turkish banking sector.
The sanctions are part of Treasury Secretary Scott Bessent’s broader “Operation Economic Outcast,” which aims to cut Iran off from financial channels that Washington believes allow Tehran to continue earning and moving oil revenues despite US sanctions. Washington has signalled that additional financial institutions could face similar measures.
The case also highlights the growing reach of US secondary sanctions. Even when a targeted bank has limited direct exposure to the US, designation can create substantial international consequences because banks, correspondent institutions and multinational companies may avoid transactions connected to the sanctioned entity to reduce their own exposure to US enforcement.
For Turkey, the immediate challenge will be containing the dispute so that sanctions against one institution do not develop into wider pressure on the country’s banking system or bilateral economic relations with Washington. For Iran, the move represents another attempt to close alternative channels through which oil revenues and foreign currency can enter its financial system.
