The US Treasury Strikes Against Iranian Shadow Banking Network
In a significant move, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on nearly 50 entities and individuals allegedly involved in a sprawling shadow banking network. This network, purportedly supported by the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolution Guards Corps (IRGC), facilitated illegal access to the international financial system and processed transactions totaling billions of dollars since 2020.
According to reports, MODAFL and IRGC engaged in revenue-generating commercial activities, with a focus on the sale of Iranian oil and petrochemicals. Wally Adeyemo, the Deputy Secretary of the US Treasury, emphasized that the US took action against a sophisticated clandestine banking system utilized by the Iranian military to launder substantial amounts of oil revenues and other illicit funds.
This latest development underscores the US government’s efforts to combat financial networks enabling illicit activities and demonstrates a firm stance against entities contributing to destabilizing behaviors. The sanctions aim to disrupt these operations and hold accountable those involved in circumventing international financial regulations.