The U.S. Department of Justice is investigating transactions tied to a business network associated with Iranian Supreme Leader Mojtaba Khamenei, which reportedly involved major U.S. financial institutions such as JPMorgan Chase and Citigroup [1]. According to a Bloomberg News report cited by FOX Business, federal investigators are examining how companies connected to Khamenei built a global investment portfolio with transactions involving these Wall Street firms [1].
The probe is part of a broader Justice Department investigation into alleged money laundering and corruption involving entities tied to Khamenei [1]. Investigators are specifically reviewing the role U.S. financial institutions may have played in processing or facilitating transactions linked to the network, though the investigation does not necessarily mean charges will be filed [1]. Bloomberg reported that the primary focus is on Khamenei and his business network, rather than the banks themselves [1].
The inquiry comes amid intensified U.S. pressure on Iran, with the administration seeking to crack down on sanctions evasion and illicit financial activity tied to Tehran and its leadership [1]. The investigation could place renewed scrutiny on how major financial institutions identify and monitor potentially sanctioned entities operating through complex international ownership structures and investment vehicles, which has been a longstanding challenge for global banks and regulators [1].
Market data shows that shares of JPMorgan Chase fell by 2.47% to $325.22, while Citigroup shares declined by 0.50% to $143.06 following the news [1]. JPMorgan Chase, Citigroup, and the Department of Justice did not immediately respond to requests for comment [1].
CONCLUSION
The DOJ's investigation into transactions involving JPMorgan and Citigroup and a network tied to Iran's supreme leader has heightened scrutiny on U.S. banks' compliance with sanctions. The news triggered notable declines in both banks' share prices, reflecting market concerns over potential regulatory and reputational risks.