The United States has imposed economic sanctions on a group of 50 entities and individuals across Hong Kong, the United Arab Emirates, Turkey, the Marshall Islands, and Iran. These entities and individuals have been accused of transferring billions of dollars in favor of Iran's Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolutionary Guard Corps (IRGC). The US Treasury Department has targeted them for their involvement in a 'shadow banking network' that has helped Iran's military and government gain illicit access to the international financial system and process billions of dollars since 2020. The income from these activities pays for weapons and funding to proxy groups, including Yemen's Houthis and drone transfers to Russia. The sanctions freeze the US assets of the banned companies and individuals and generally prohibit Americans from dealing with them [e266690f] [725e7ed3] [e53b7dc0] [14e50944].
These recent sanctions on the network involved in moving funds for Iran's military highlight the US government's determination to counter Iran's destabilizing actions and restrict its military capabilities. The sanctions aim to disrupt the flow of funds to Iran's military, thereby limiting its ability to support proxy groups and engage in military activities in the region. The involvement of this network in facilitating the transfer of drones to Russia for use in the war against Ukraine has further prompted the US to take action against them [e266690f] [725e7ed3] [e53b7dc0] [14e50944].
The US government's actions against both the Cook Islands-flagged ships and the network involved in moving funds for Iran's military demonstrate its commitment to countering Iran's destabilizing actions and reducing its military capabilities. These sanctions are part of a broader effort to disrupt Iran's support for proxy groups and its involvement in conflicts in the region [667ce7bb] [e266690f] [725e7ed3] [e53b7dc0] [14e50944].
This is not the first time the US has sanctioned Iranian shadow banking businesses. In March 2023, similar sanctions were imposed on 39 firms linked to a shadow banking system that facilitated financial activity between sanctioned Iranian firms and their foreign buyers [e53b7dc0].
The US Treasury Department is imposing sanctions on a shadow banking network for Iran's military. The network includes 50 people and firms in Hong Kong, the United Arab Emirates, and the Marshall Islands. It is used by Iran's Ministry of Defense and Armed Forces and Islamic Revolutionary Guard Corps. The network has gained illicit access to the international finance system and has processed billions of dollars since 2020. The individuals and organizations in the network are involved in the sale of Iranian oil and petrochemicals, using the money to purchase weapons and fund groups like Yemen's Houthi rebels. The Treasury Department has taken action against a group of entities operating as part of an Iranian shadow banking network in March 2023. The network allows certain Iranian entities to access the international financial system by creating cover companies in the UAE and Hong Kong. The individuals being sanctioned include Seyyed Mohammad Mosanna'I Najibi, Asadollah Seifi, Ramin Jalalian, and Siavash Nourian.
In addition to the sanctions on the Iranian shadow banking network, the United States has also imposed sanctions on a network of individuals and firms in China accused of supporting North Korea's ballistic missile and space programs. The network is alleged to have helped North Korea procure items for its missile programs in violation of UN Security Council resolutions. The US Treasury Department stated that North Korea's development of ballistic missile technologies is irresponsible and destabilizing. The sanctions target Chinese national Shi Qianpei, his business partner Chen Tianxin, Shi's wife, and two employees who assisted in procuring materials for North Korean missiles [f828cea4].