U-turn (banking)
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This article needs additional citations for verification. (January 2024) |
A U-turn transaction, generally speaking, is a banned financial transaction performed by a bank in country A (e.g., the United States) for the benefit of a bank in country B (e.g., Iran) through an offshore bank in a third country (e.g., Switzerland). This loophole is used especially by Iranian banks to avoid U.S. sanctions against their US dollar-based transactions.[citation needed]
The phrase "U-turn" comes from the reversal-style process of transferring funds to a U.S. bank and then instantly returning the amount of money as dollars to a European bank.[1]
References
- ^ "Potential U.S. Clarification of Financial Sanctions Regulations | The Washington Institute". www.washingtoninstitute.org. Retrieved 2024-06-02.
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