DOJ probes US banks over transactions tied to Iran's supreme leader, Bloomberg News reports

American financial institutions, like JPMorgan Chase, are being investigated for possibly facilitating large money movements between firms overseen by Mojtaba Khamenei.

The US Justice Department (DOJ) is conducting a probe into how Iran’s Supreme Leader Mojtaba Khamenei built a sprawling global investment portfolio with exposure to Wall Street banks, according to four officials with direct knowledge of the matter.

The move stems from a broad examination into allegations of money laundering and corruption.

As part of that, investigators have begun looking at the possible involvement of US financial institutions, including JPMorgan Chase and Citigroup, in facilitating large money movements between firms overseen by Khamenei, three of the people said.

The DOJ’s probe is examining those transactions, including the role of US correspondent banks, three of the people said. All the officials declined to be identified because they were not authorised to speak publicly.

Investigators want to understand the Supreme Leader’s network and identify any potential gaps that may exist in due-diligence procedures for US institutions that could have allowed such financial flows in the first place, they said.

The existence of the probe does not mean any charges will be filed. Its main target is Khamenei, who became the Islamic Republic’s Supreme Leader in March after his father was killed in a US-Israel air strike at the start of the Iran war.

European and Middle Eastern lenders have drawn scrutiny in the probe, three of the people said. The DOJ is also studying property-related payments made by the network to global brands, including Hilton Worldwide Holdings, according to one of the officials with direct knowledge of the matter.

Bloomberg News in January revealed how Khamenei, who was sanctioned by the US in 2019 over his work for the government in Tehran, amassed a sprawling business empire ranging from Persian Gulf shipping to Swiss bank accounts and British luxury property.

Funds for the transactions have been routed through financial institutions in Britain, Switzerland, Liechtenstein and the UAE.

The DOJ investigation became more diplomatically sensitive as Washington and Tehran edged closer to an interim peace deal, particularly given Khamenei’s own role in the decision-making process surrounding the agreement, three of the people said.

The deal, to end the war and open talks on longstanding grievances, including Iran’s nuclear programme, was signed on June 17.

Before becoming the country’s supreme leader, Khamenei relied heavily on financier Ali Ansari,