A group of 50 people and firms across across Hong Kong, the United Arab Emirates and the Marshall Islands that have been acting as a “sprawling shadow banking network” for Iran’s military were hit with economic sanctions Tuesday, the U.S. Treasury Department said.
Quick Read
- U.S. sanctions a “sprawling shadow banking network” of 50 entities and individuals in Hong Kong, the UAE, and the Marshall Islands for supporting Iran’s military.
- The sanctioned network involved in selling Iranian oil and petrochemicals, aiding Iran’s military and government in accessing the international financial system illicitly.
- Revenue from these activities funds weapons, proxy groups like Yemen’s Houthis, and drone transfers to Russia.
- Iran is accused of supplying drones to Russia used in bombing Ukrainian civilians amid the ongoing invasion.
- Sanctioned individuals include Seyyed Mohammad Mosanna’i Najibi, an Iranian-Turkish money-changer, 27 cover companies, and a Tehran-based currency exchange business.
- The sanctions freeze any U.S. assets of the entities and individuals and prohibit U.S. companies and citizens from doing business with them.
- Treasury Deputy Secretary Wally Adeyemo emphasized the U.S. commitment to targeting financiers of Iran’s terrorist activities in cooperation with allies and the global financial industry.
- The U.S. previously sanctioned Iranian shadow banking systems in March 2023, targeting firms involved in petrochemical transactions for sanctioned Iranian entities.
The Associated Press has the story:
US sanctions ‘sprawling’ shadow banking network for supporting Iranian military
Newslooks- WASHINGTON (AP) —
A group of 50 people and firms across across Hong Kong, the United Arab Emirates and the Marshall Islands that have been acting as a “sprawling shadow banking network” for Iran’s military were hit with economic sanctions Tuesday, the U.S. Treasury Department said.
Treasury’s Office of Foreign Assets Control says the entities and individuals are involved in the sale of Iranian oil and petrochemicals, which have helped Iran’s military and government gain illicit access to the international financial system.
The income pays for weapons and funding to proxy groups, including Yemen’s Houthis, as well as drone transfers to Russia, Treasury says.
Iran is accused of supplying Russia with drones that are used to bomb Ukrainian civilians as the Kremlin continues its invasion of Ukraine.
Included in the sanctions are Seyyed Mohammad Mosanna’i Najibi, an Iranian-Turkish money-changer, 27 cover companies controlled by Najibi based in Hong Kong, the United Arab Emirates and the Marshall Islands, and a Tehran-based currency exchange business, among others.
An inquiry through the Iranian branch of Najibi’s company, known as Sadaf Exchange, was not immediately answered.
Among other things, the sanctions deny the people and firms access to any property or financial assets held in the U.S. and prevent U.S. companies and citizens from doing business with them.
Treasury Deputy Secretary Wally Adeyemo said the U.S. “will continue to pursue those who seek to finance Iran’s destabilizing terrorist activities. We continue to work with allies and partners, as well as the global financial industry, to increase vigilance against the movement of funds supporting terrorism.”
The U.S. has already sanctioned Iranian shadow banking businesses. I n March 2023, the U.S. imposed economic sanctions on 39 firms linked to a shadow banking system that helped to obfuscate financial activity between sanctioned Iranian firms and their foreign buyers, namely for petrochemicals produced in Iran.
