Exchange house definition

Exchange house

A financial institution licensed to deal in foreign exchange and transmit funds for clients. In Iran-related enforcement, one that moves money for sanctioned banks through foreign front companies.

also known as

currency exchange house, money exchanger

reviewed

2026-10-29

Cite this page

APA 7

Sanctions Evasion Reference. (2026, October 29). Exchange house. https://sanctionsevasion.org/reference/glossary/exchange-house/

Chicago

Sanctions Evasion Reference. “Exchange house.” Last reviewed October 29, 2026. https://sanctionsevasion.org/reference/glossary/exchange-house/.

BibTeX

@misc{ser-reference-glossary-exchange-house,
  author = {{Sanctions Evasion Reference}},
  title  = {Exchange house},
  year   = {2026},
  note   = {Last reviewed 2026-10-29},
  url    = {https://sanctionsevasion.org/reference/glossary/exchange-house/}
}

The date is when this page was last reviewed, not when it was first published.

FinCEN defines exchange houses as financial institutions licensed to deal in foreign exchange and transmit funds on behalf of individuals and companies. The designations described on this site concern Iran-based exchange houses that, according to Treasury, hold and move foreign currency for sanctioned Iranian banks.

Treasury describes those houses as often family-run general partnerships whose partners are ultimately liable for the funds entrusted to them by the banks. Each runs its own network of front companies abroad, with foreign bank accounts used in several currencies.

Where this term is used

What are exchange-house and rahbar networks? — A parallel payment system in which Iranian exchange houses and bank-appointed rahbar companies use front companies abroad, mostly in Hong Kong and the UAE, to receive and pay foreign currency for sanctioned Iranian banks and exporters.

Related terms

Rahbar company — A private company that an Iranian bank uses to manage its clients' international payments, typically through shell companies and exchange houses abroad.
Shadow banking (FinCEN usage) — FinCEN's term for the network of front companies, banks and money exchangers Iran uses to bypass sanctions and banking controls and move funds globally.
Hawala — A value transfer arrangement in which brokers in different countries pay out to each other's customers and settle the resulting obligations between themselves later.
Informal value transfer system — Any arrangement that transfers value between parties without moving funds through the regulated banking system, settling obligations by netting or in kind.

Where this term is used

Related terms

Sources