Sanctions Evasion: The Banking Loophole Big Business Uses

The correspondent banking system connects banks worldwide. It helped build the modern global economy. But it also has a dark side. Companies use this system to avoid U.S. sanctions. Correspondent banking lets a bank in one country hold accounts for a bank in another. This creates a chain of transactions across borders. That chain is hard to track. So companies can move money through it to hide their true business partners. In this way, they skirt U.S. penalties meant to stop trade with certain countries or groups. The result: a system that powers global trade also powers those who try to escape the rules.