US Citizens Become Collateral Damage in Global Sanctions Fight
Americans with roots in targeted countries face heightened scrutiny from banks fearing fines for violations.
Shahbaz Salehi inherited $300,000 after his dad died three years ago. But because his father was in Iran, the California doctor knew the sanctions governing financial dealings with the country would complicate getting the money. So Salehi, a US resident for more than three decades and a citizen since 2000, routed the funds in several steps, first to China, then to Canada, then to the US—working with a lawyer to ensure compliance with US Treasury Department guidelines and following a common path for noncommercial transactions.
Yet not long after the inheritance reached Wells Fargo & Co., the bank closed Salehi’s account and told him to withdraw the money, citing a need to reduce risk. “A lot of Iranians right now in the US are in the same situation,” Salehi says. “They want to bring money over, but they’re not sure how to do it because they’re afraid that if they do, it’s going to be blocked.”