On June 25, 2024, the U.S. Treasury Department announced wide-ranging sanctions against nearly 50 individuals and companies allegedly involved in a "shadow banking network" that facilitated Iran's access to the international financial system. This network allegedly supported the Iranian Ministry of Defense and the Islamic Revolutionary Guard Corps (IRGC) by generating and disguising revenue from the sale of Iranian oil and petrochemicals since 2020.
The sanctioned entities and individuals are located in Iran, Hong Kong, the United Arab Emirates, Turkey, and the Marshall Islands. According to the Treasury Department, the illicit funds were used to procure and develop advanced weapon systems and supply regional proxies, including Yemen’s Houthi militant group. Additionally, these funds were used to transfer armed drones to Russia for use in the ongoing conflict with Ukraine.
Key figures in the network include Seyyed Mohammad Mosanna’i Najibi, an Iranian-Turkish money-changer, and 27 cover companies he controls. The sanctions will block their access to U.S.-held property and financial assets, and U.S. companies and citizens are prohibited from conducting business with them.
Deputy Secretary of the Treasury Wally Adeyemo emphasized the continued effort to counteract Iran’s destabilizing activities and called for vigilance within the global financial industry. The announcement comes just days before Iran's presidential elections, scheduled for June 28, following the death of former President Ebrahim Raisi.