The United States Department of the Treasury has announced economic sanctions on 50 people and firms from Hong Kong, the United Arab Emirates, and the Marshall Islands for their involvement in a shadow banking network that supports Iran’s military. These individuals and entities are said to be selling Iranian oil and petrochemicals, providing revenue that helps fund weapons and proxy groups like Yemen’s Houthis. Additionally, some of the funds are allegedly being used to facilitate drone transfers to Russia, which has been implicated in attacks on Ukrainian civilians during the ongoing conflict in Ukraine.
Among those sanctioned are Seyyed Mohammad Mosanna’i Najibi, an Iranian-Turkish money-changer, along with 27 cover companies controlled by Najibi based in various locations, including Hong Kong, the UAE, and the Marshall Islands. The sanctions imposed by the Treasury Office of Foreign Assets Control will cut off these individuals and firms from accessing any property or financial assets in the US and will prohibit US companies and citizens from engaging in business with them.
Treasury Deputy Secretary Wally Adeyemo emphasized the US commitment to targeting those who support Iran’s destabilizing activities, including terrorism. The US government is working with allies, partners, and the global financial industry to enhance monitoring against funds that may potentially support terrorism. This latest round of sanctions builds on previous actions taken by the US against Iranian shadow banking networks in March 2023, when sanctions were imposed on 39 firms linked to a system that obscured financial transactions between sanctioned Iranian entities and their international buyers for petrochemicals.
Overall, the US is taking a strong stance against entities that enable Iran to circumvent sanctions and fund illicit activities, and it remains vigilant in its efforts to disrupt the flow of funds supporting terrorism.