The United States has imposed sanctions on a network of entities and individuals accused of conducting billions of dollars in financial transactions on behalf of the Iranian military. The US Treasury Department announced on Tuesday that the sanctions target a “shadow banking network” allegedly used by the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolutionary Guard Corps (IRGC). Both organizations are already subject to US sanctions.
According to the Ministry of Finance, this network has enabled the Ministry of Defense and the Iranian Revolutionary Guard to access the international financial system and process billions of dollars in funds since 2020. Deputy Treasury Secretary Wally Adeyemo said: “The United States is taking action against the massive shadow banking system used by the Iranian military to launder billions.” Dollars from oil revenues and other illicit revenues.”
The sanctions affect approximately 50 entities and individuals linked to this network, including companies based in Hong Kong, the United Arab Emirates, the Marshall Islands, Iran and Turkey. The US government's actions will freeze any assets these entities hold under US jurisdiction and prevent US individuals and companies from doing business with them. In addition, engaging in certain transactions with targeted entities may expose others to the risk of sanctions.
This step comes as part of Washington's ongoing efforts to pressure Tehran amid broader tensions and concerns about Iranian military activities and its influence in the region. The sanctions aim to disrupt financial mechanisms that the United States says support Iran's military efforts.
Reuters contributed to this article.
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