The United States Department of the Treasury announced on Tuesday (April 28) the imposition of sanctions on 35 entities and individuals. These targeted sanctions are aimed at those playing crucial roles in Iran’s shadow banking system, facilitating the transfer of billions of dollars in funds related to Iran’s sanction evasion activities.
In a statement released by the Treasury Department, as part of the U.S. “Economic Wrath” action against Iran, the Office of Foreign Assets Control (OFAC) has included 35 entities and individuals responsible for operating Iran’s shadow banking system on the sanctions list. These entities assisted in the flow of billions of dollars equivalent funds associated with Iran’s sanction evasion and support for terrorism.
“These networks enable Iran’s armed forces such as the Islamic Revolutionary Guard Corps to access the international financial system, receive illegal proceeds from oil sales, buy missiles and sensitive parts of other weapon systems, and transfer funds to Iran’s terrorist proxies,” the Treasury Department said.
U.S. Treasury Secretary Scott Bessent stated, “Iran’s shadow banking system is a crucial financial lifeline for its armed forces, enabling them to disrupt global trade and fuel violent activities across the Middle East. Illegal funds transported through this network support Iran’s continuous terrorist activities, posing a direct threat to American personnel, regional allies, and the global economy. Financial institutions must take note: any institution providing assistance to or cooperating with these networks will face serious consequences.”
The Treasury Department mentioned that today’s sanction actions expose and combat the mechanisms through which the Iranian regime collects proceeds from oil and other commodities, increasing the cost of Iran’s destabilizing activities, reducing its related revenue, and also exposing those individuals aiding the regime in abusing the international financial system.
In addition to the sanctions imposed on Tuesday, the Office of Foreign Assets Control also issued explicit guidelines and warnings, stating that individuals or entities paying “toll fees” to the Iranian government or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz may face significant risks of severe sanctions.