As part of the United States’ “Economic Wrath” campaign against Iran, the U.S. Department of the Treasury announced on Tuesday (May 19) the designation of a prominent Iranian foreign exchange entity and its associated front companies, including several shell companies in China and Hong Kong, for sanctions. These companies represent sanctioned Iranian banks handling transactions worth hundreds of millions of dollars.
According to the Treasury Department’s announcement, the Office of Foreign Assets Control (OFAC) also froze 19 vessels involved in transporting Iranian oil and petrochemical products to overseas clients on Tuesday, with these transactions generating revenues in the hundreds of millions of dollars.
“Overall, Iran’s foreign exchange entities facilitate tens of billions of dollars in foreign currency transactions annually, enabling the Iranian regime and its armed forces to circumvent sanctions, access the international financial system, and transfer funds from the sales of oil and petrochemical products,” the Treasury Department stated in its announcement.
The announcement further stated that today’s actions will further weaken the disposable income of the Iranian regime, limiting its ability to fund weapon development, support terrorist proxies, and move funds overseas for personal gain.
“Iran’s shadow banking system facilitates illicit fund transfers for terrorist purposes,” said Treasury Secretary Scott Bessent. “As the Treasury systematically dismantles Tehran’s shadow banking system and shadow fleet under the ‘Economic Wrath’ campaign, financial institutions must remain vigilant on how this regime manipulates the international financial system to create chaos.”
The sanctions include the major Iranian currency exchange entity “Amin Exchange.” The Treasury Department indicated that “Amin Exchange” facilitated hundreds of millions of dollars in foreign exchange transactions for sanctioned Iranians and collaborated with sanctioned Iranian banks and petrochemical exporters. Operating through a network of shell companies established in the United Arab Emirates, Turkey, and China (including Hong Kong), “Amin Exchange” engaged in cross-border money laundering activities to support sanctioned Iranian importers or exporters, thus becoming an indispensable part of the Iranian banking system.
OFAC also designated several shell companies that participated in financial activities of “Amin Exchange” and other sanctions evasion activities, including providing payment assistance for the transport of goods related to Iranian oil, petrochemicals, metals, manufacturing, and automotive industries.
These shell companies include:
– Ningbo Jiarui Trading Co., Ltd. in China;
– Starshine Petrochemical Corporation Limited in Hong Kong;
– Vigorous Trading Limited in Hong Kong;
– Alieen Goods Wholesalers LLC in the United Arab Emirates;
– Bold Trading FZE in the United Arab Emirates;
– Materium Group FZE in the United Arab Emirates;
– Bestfortuna Company Limited in Hong Kong;
– Cheng Pan Co., Limited in Hong Kong.