The US Treasury sanctioned an Iraqi bank and several Iranian offshore banks on October 15, 2026, in the latest round of Operation Economic Outcast. The campaign targets the financial networks that carry Iran's oil and military revenue, and it now includes a crypto platform.
The US Treasury sanctioned the International Development Bank for Investment and Finance in Iraq on October 15, 2026, along with several Iranian offshore banks operating in free trade zones. The move is the latest major step in Operation Economic Outcast.
According to Treasury Secretary Scott Bessent, the operation is an "economic D-Day." The campaign launched on August 24, 2026, and its sanctions have now designated over 60 entities, individuals, and vessels.
Banks, ships, and shadow bankers
Operation Economic Outcast is a series of sanctions rounds aimed at sectors Treasury considers central to how Iran gets around existing restrictions. Those sectors include aviation, shipping, and digital assets.
Treasury has also gone after shadow banking operatives across multiple jurisdictions. These people and firms run informal financial channels that route payments outside the formal banking system so sanctioned parties can still settle trades.
The legal backbone for most of these actions is Executive Order 13902, which focuses on Iran's financial and petroleum sectors.
BitBank puts crypto on the list
The crypto piece arrived on September 17, 2026, when Treasury sanctioned BitBank. Treasury said the platform facilitated Bitcoin transfers to the Islamic Revolutionary Guard Corps.
By naming digital assets alongside shipping and aviation, Treasury is placing crypto in the same category as tankers and cargo planes.
Secondary sanctions warning for foreign banks
Treasury has said banks outside the US could face secondary sanctions if they do business with sanctioned entities. It has stressed cutting Iran off from dollar-based finance.
In Treasury's framing, the operation goes after the evasion channels themselves rather than isolated actors. Treasury has framed the ultimate objective as undermining the regime's capacity to fund military operations and proxy activities.
Source: Crypto Briefing
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