On The RADAR: Global Banking and Sanctions Updates
With geopolitical tensions continuing to run high globally in wake of growing sanctions and tariff threats, the global financial sector has remained under intense regulatory pressure. In spite of the risks for non-compliance, significant breaches in anti-money laundering (AML) protocols by financial institutions, as well as shortcomings in sanctions compliance by our international counterparts continue to run rampant as highlighted by a series of major headlines emerging across these spaces at the international level over the past several weeks.
U.S. Targets Iran’s Oil Trade with Sweeping Sanctions
The U.S. Treasury Department under the Trump Administration has imposed its most significant Iran-related sanctions since 2018, with the U.S. recently moving to impose new sweeping sanctions targeting a vast shipping network controlled by Mohammad Hossein Shamkhani, son of a key political adviser to Iran’s supreme leader. The network, spanning approximately 20 countries, is accused of funneling tens of billions of dollars in oil revenue
directly to Tehran, effectively allowing the Iranian government and its affiliates to evade U.S. sanctions through more-sophisticated methods, including the use of front companies and falsified documents to keep their network thriving.
The Treasury’s sanctions package targets what has been identified as the largest evasion network that exists in this region, and will reportedly cover over 115 individuals, vessels, and entities, including 52 oil tankers and 15 shipping companies, whose operations have been linked to China, the UAE, and even European nations like the UK and Switzerland. 2 This action aligns with President Trump’s “maximum pressure” campaign to further curb Iran’s funding efforts for its weapons programs, while attempting to diffuse the embattled country’s regional influence which remains widespread in spite of the countless international actions taken against it over the past decade. Treasury officials assert the measures will disrupt Iran’s oil sales without potentially destabilizing the global markets as a whole, though the long-term impact of these efforts remains uncertain at this time.
India Balks At U.S. Tariff Threats, Doubles Down on Purchase of Russian Oil
Further escalating tariff-related tensions, government officials of India recently announced that the world’s most populous country will continue to purchase Russian oil despite threats of substantial penalties from U.S. President Donald Trump. After recently levying a new 25% tariff on India’s exports to the U.S., President Trump indicated that the country could face new, staunch penalties for continuing to purchase both arms and oil from Russia. India has since countered, stating that their purchases are built on pre-existing, long-term
contracts that are challenging to modify or simply cancel. Indian Foreign Ministry spokesperson Randhir Jaiswal doubled down on this stance, emphasizing that India’s foreign relations are governed by energy needs and market availability, and are not dictated by external policy pressures. 4 As such, the representative has affirmed that there
will be no immediate change in India’s energy strategy in spite of Trump’s threats.
Russian crude oil remains India’s largest oil source, accounting for roughly 35% of its total imports in early 2025. As such, achange in the country’s stance would require a major shake-up in their quest for sustainable energy security. Reuters writes that the latest tariffs imposed on India were levied to further pressure the national government to agree to more inclusive trade dealings, with negotiations seen on this front earlier in the year growing stagnant. The 25% tariff singles out India for “harsher trade conditions than its major peers, potentially damaging the economy of a strategic U.S. partner in Asia seen as a counterbalance to Chinese influence.”
Barclays Fined $56 Million for AML Lapses
In the United Kingdom, Barclays has been fined £42 million ($56 million) by the Financial The Conduct Authority (FCA) – Britain’s primary financial regulator – for failing to manage money-laundering risks in its dealings with “high-risk” clients. The bulk of the penalty, £39.3 million, stems from its multi-year relationship with Stunt & Co., a gold firm which received £46.8 million spread over hundreds of payments from Fowler Oldfield, a company
tied to one of Britain’s largest money-laundering cases. The FCA found that in 2016, Barclays was informed by law-enforcement officials that they had suspected Fowler of receiving significant amounts of dirty cash, with Stunt being a primary recipient of electronic payments from the jeweler at that time. Later that year, police ultimately raided
Stunt & Co.’s offices and arrested a dozen individuals operating at Fowler Oldfield. In spite of these developments, Barclays did nothing more than review Stunt & Co.’s accounts, while failing to change its risk rating for the firm or do any additional due diligence into this illicit activity. 5 Fowler’s two directors and two other men tied to the firm were later convicted on money-laundering charges.
A separate £3 million fine was also imposed by the FCA for Baclays lapses in dealings with WealthTek, a wealth management firm that deposited £34 million without proper FCA authorization checks. Since the time of these transgressions, Barclays has worked to strengthen its AML controls while cooperating fully with regulators, though the recently announced fines reflect ongoing regulatory scrutiny of its compliance systems.
HSBC’s Swiss Private Bank Faces Money Laundering Probe
HSBC’s Swiss private bank is under investigation by both Swiss and French authorities for alleged money laundering offenses tied to two long-standing client relationships. The probe follows a 2023 report by Switzerland’s financial regulator, Finma, which found HSBC failed to properly vet high-risk accounts held by politically exposed persons (PEPs), with over $300 million in illicit transactions occurring between 2002 and 2015. 1 The activity reportedly centered around funds originating from a Lebanese government institution. While purely speculative, reports have indicated that Lebanon’s former central-bank governor Riad Salameh, who is under investigation for alleged financial crimes in over ten countries, held an account at HSBC Private Bank in Geneva. Finma has since banned the lender from onboarding more PEPs as clients in the near term. The bank has acknowledged the investigations but notes they are in early stages of remediation, making outcomes unpredictable at current.
Citations
1. Bose, Sourasis. “HSBC’s Swiss Private Bank Hit by Money Laundering Probe, Q2 Profit Slumps.” Stocktwits, 30 July 2025.
2. Chávez, Steff, and Abigail Hauslohner. “US Imposes New Sanctions on Iran Oil Shipping Network.” The Financial Times, 31 July 2025.
3. Kumar, Manoj, and Nikunj Ohri. “India Vows to Protect Farmers as Trump’s 25% Tariff Threat Sparks Opposition Fury | Reuters.” Reuters, 31 July 2025.
4. Patel, Shivam, and Chandni Shah. “India to Maintain Russian Oil Imports despite Trump Threats, Government Sources Say | Reuters.” Reuters, 2 Aug. 2025.
5. Wallace, Joe. “Barclays Fined $56 Million for Money-Laundering Failures.” The Wall Street Journal, 16 July 2025.