The US Justice Department has opened an investigation into JPMorgan Chase and Standard Chartered over allegations the banks handled billions of dollars in Iranian oil revenue. The money is tied to an advisor to Iran's Supreme Leader, according to people familiar with the matter.
The Alleged Flow of Iranian Oil Money
Federal investigators are looking at how Iranian oil revenue moved through the two banks. The probe centers on funds linked to an advisor to Iran's Supreme Leader — a figure sanctioned by the US. The exact sums involved are not yet public, but the Justice Department is examining transactions that may have evaded sanctions and anti-money laundering controls.
Iran has long been cut off from much of the global banking system due to US and international sanctions. Banks that process Iranian oil payments risk severe penalties, including fines and even criminal charges. The investigation suggests the Justice Department believes the flows were deliberate, not accidental.
JPMorgan and Standard Chartered in the Spotlight
JPMorgan Chase, the largest US bank by assets, and Standard Chartered, a London-based lender with deep ties to the Middle East, are both under scrutiny. Neither bank has publicly commented on the probe. Standard Chartered has a history of sanctions-related settlements; it paid more than $1 billion in 2019 to resolve US and UK investigations into violations involving Iran, Sudan, and other nations. JPMorgan has faced enforcement actions for weak anti-money laundering controls in the past.
The current investigation is separate from those earlier cases. It targets a specific network of payments linked to the Supreme Leader's advisor — a person whose name has not been disclosed by authorities. The Justice Department is working with other federal agencies to trace the money trail.
Ongoing Inquiry Without Charges
No charges have been filed against either bank or any individuals. The investigation is in its early stages, and the Justice Department could decide to drop the matter or seek a settlement. For the banks, the reputational risk is immediate. Both institutions have spent years rebuilding compliance teams after past scandals.
The probe also raises questions about how Iranian entities continue to move money through the global financial system despite sanctions. US officials have repeatedly said they are cracking down on evasion tactics, but the scale of the flows alleged here — billions of dollars — suggests the problem persists. The Justice Department's inquiry is ongoing, and more details are expected to emerge as investigators subpoena records and interview current and former bank employees.
