DOJ probes two Wall Street banks over Iran leader money flows

The Justice Department is investigating how Iranian Supreme Leader Mojtaba Khamenei built a global investment portfolio with exposure to Wall Street banks, according to four officials with direct knowledge of the matter.

The probe, part of a broader examination into money laundering and corruption, has drawn scrutiny of JPMorgan Chase & Co. and Citigroup Inc. for their possible role in facilitating large money movements between firms overseen by Khamenei, three of the people said. The investigation does not necessarily mean charges will be filed, with the primary focus on identifying gaps in the US banking system that could allow sanctioned entities to access dollar-denominated markets.

"The efforts collectively of the government over the last 10 years have really driven Iran out of legitimate financial institutions," Molly Moeser, who runs the DOJ's money laundering division, said in May at an industry conference in New York. "Because the US dollar is still the most stable currency and the currency everybody wants to make payments in, Iran looks for every opportunity to use shell companies, use shadow structures to still get access to the US dollar."

Khamenei became supreme leader in June after his father, Ayatollah Ali Khamenei, was killed in US-Israeli airstrikes early in the war with Iran. The new ruler was personally sanctioned by the US in 2019 for acting on behalf of his father and working closely with the commander of the Islamic Revolutionary Guard Corps. His network spans Persian Gulf shipping, British luxury property, and hotels across Europe, with funds routed through banks in the UK, Switzerland, Liechtenstein and the United Arab Emirates, Bloomberg reported.

The Network's Reach

Prior to becoming supreme leader, Khamenei used Ali Ansari, a financier, as a conduit for shifting funds overseas through shell companies that purchased luxury homes and five-star hotels across Europe, including several operated by Hilton Worldwide Holdings Inc. Ansari was slapped with sanctions in October 2025 for allegedly financially supporting the IRGC. His lawyer has denied any ties to Khamenei.

Over the past few months, multiple entities in Khamenei's empire have shifted from being filed under Ansari's name to others close to the ruler, a possible attempt to conceal ownership, an official told Bloomberg. Hilton launched an internal investigation over whether it was putting itself at risk of sanctions by keeping ties to two of its hotels in Germany — the Hilton Frankfurt City Centre and the Hilton Frankfurt Gravenbruch. Advisers warned the hotel chain it could face regulatory and reputational issues if it did not cut ties, though booking options for both properties remain listed on Hilton's website.

What's at Stake for Wall Street

The DOJ probe represents a fresh regulatory risk for US banks already navigating heightened compliance costs and sanctions enforcement. JPMorgan and Citigroup, two of the largest dollar-clearing institutions globally, face potential fines, reputational damage, and increased scrutiny of their anti-money laundering controls if investigators find compliance gaps. European and Middle Eastern lenders are also under review, widening the probe's potential impact across the global banking system.

The last major sanctions enforcement action against a Wall Street bank came in 2022, when Goldman Sachs paid $2.9 billion to resolve probes into the 1MDB scandal. A finding that US banks failed to detect Khamenei-linked flows could trigger similar penalties and force industry-wide upgrades to transaction monitoring systems.

This article is for informational purposes only and does not constitute investment advice.