UAB Magazine Issue October 2026

93 Study Union of Arab Banks - October - 2026 U.S. Regulatory Priorities and Secondary Sanctions: Strategic Implications for Banks and Cross-Border Financial Transactions Introductions For banks, international banking is not an optional activity. It is essential to trade, investment, remittances, and the daily movement of money across borders. Businesses need to pay suppliers, importers need letters of credit, and individuals need to transfer funds to their families. Much of this activity depends on correspondent banking relationships, including access to the U.S. dollar. But maintaining these relationships has become more challenging. U.S. authorities are paying closer attention to how money moves through the international financial system, who ultimately benefits from a transaction, and whether financial institutions are being used to bypass sanctions or conceal illicit activity. The consequences can be serious. A bank may face regulatory action, lose access to U.S. correspondent banking services, or find that other international banks are no longer willing to work with it. Even institutions that are not directly targeted can face greater scrutiny because of their customers, business partners, or geographic exposure.