Turkish State Takes Near-Total Control Of US-Sanctioned Bank Over IRGC Ties

On September 4, the US Treasury unveiled sanctions against a Turkey-based bank and two of its subsidiaries, accusing them of moving tens of millions of dollars on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC) Quds Force and facilitating Tehran’s movement of funds across the international banking system. 

It did not take long for the Turkish government to sweep in and act to contain the damage and what some interpret as a national reputational hit, which was one of the opening salvoes in the Trump/Bessent ‘Economic D-Day’ and secondary sanctions (Operation Economic Outcast) targeting Tehran and entities still doing business with the Islamic Republic.

On Wednesday Turkey’s banking regulator has taken over most shareholder rights of the US-targeted bank - the Golden ⁠Global Yatirim Bankasi – through the country’s state deposit insurer, TMSF (Savings Deposit Insurance Fund).

Turkish media notes that “The decision gives the fund the authority to exercise the shareholder rights attached to the stakes, while specifically excluding dividend rights.”

The newly reassigned rights cover 99.98 percent of the shares in the bank, reports also detail.

Publicly available figures indicate that Golden Global Investment Bank is a small and young bank, having €498 million ($574.5 million) in total assets, and was only founded in 2019.

In the wake of the US action, US Ambassador to Turkey and Trump special envoy for the broader region Tom Barrack had sought to calm the Turkish government by saying Washington is only targeting specific financial institutions and this is not meant as a shot against Turkey itself.

“This designation is aimed at the conduct of one entity, not at a nation, not at a banking system, and not at an ally,” Barrack wrote on X.

He further declared it would be “a serious error” to interpret the measure as a judgment on the Turkish ally as a whole.

The country’s Finance Minister Mehmet Simsek had simply acknowledged last week that Ankara had taken note of US Treasury announcements – suggesting some kind of serious house cleaning could soon follow.

OFAC alleges the bank was created to help Iranian oil revenues reach Turkey from China, where exchangers converted the funds into cash and gold, and accuses it of opening correspondent banking to Iranian institutions through accounts under Quds Force control. There are reports saying the bank has officially rejected the charges against it.