Sanctioning Iran’s “Shadow Banking” Network of Money Launderers and Illicit Oil Traders

Today, the United States is sanctioning over 35 individuals and entities with ties to a network involved in money laundering on behalf of the Iranian regime.  This network has laundered billions of dollars through Iranian exchange houses and foreign front companies to sustain Tehran’s campaigns of terror that undermine international peace and security and line the pockets of regime elites.  As part of this network, the Zarringhalam brothers and their associates use numerous UAE- and Hong Kong-based front companies to help designated Iranian persons generate revenue from the sale of petroleum and other commodities subject to U.S. sanctions.  This is the first action against Iran’s shadow banking network since the President issued the National Security Presidential Memorandum on February 4.

Concurrently, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) updated an Advisory to help U.S. and international financial institutions identify and report suspicious activities related to Iranian illicit financial activities.  The Advisory includes information on forms of illicit finance, as well as red flags associated with Iranian oil smuggling, shadow banking, and procurement of weapons and dual-use components.

The United States will continue to deny Iran access to financial networks and the global banking system as long as Iran continues its destabilizing activities.  We will promote accountability for those who seek to undermine international peace and security.

Today’s action is being taken by OFAC pursuant to Executive Order (E.O.) 13902, which targets Iran’s financial and petroleum and petrochemical sectors.  This action implements National Security Presidential Memorandum 2, which orders a campaign of maximum pressure on Iran.  For more information, please refer to Treasury’s Press Releases.