U-turn (banking): Difference between revisions
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| ⚫ | A '''U-turn transaction''', generally speaking, is a banned [[financial transaction]] |
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| ⚫ | 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 [[banking in Iran|Iranian banks]] to [[sanctions evasion|avoid]] [[sanctions against Iran|U.S. sanctions]] against their [[US dollar]]-based transactions. |
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The phrase "U-turn" comes from the reversal-style process of transferring funds to a U.S. bank and then instantly returning the moneys as dollars to a European bank. |
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==References== |
==References== |
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[[Category:Banking]] |
[[Category:Banking]] |
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[[Category:Offshore finance]] |
[[Category:Offshore finance]] |
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Revision as of 04:36, 5 January 2024
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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.
The phrase "U-turn" comes from the reversal-style process of transferring funds to a U.S. bank and then instantly returning the moneys as dollars to a European bank.
References
 | This economic term article is a stub. You can help Wikipedia by expanding it. |
