The United States government announced on Friday the imposition of sanctions on over 35 individuals and entities associated with a sophisticated money laundering network that supports the Iranian regime. This action targets a network believed to have laundered billions through various exchange houses in Iran as well as foreign front companies, enabling Tehran to fuel campaigns that threaten international peace and further enrich regime elites.
Among those sanctioned are the Zarringhalam brothers, who, along with their associates, have utilized numerous companies based in the United Arab Emirates and Hong Kong. These businesses are accused of assisting designated Iranian individuals in generating revenue from the sale of petroleum and other goods that are under U.S. sanctions.
This sanctions announcement marks the first significant action against Iran’s shadow banking system since President Biden signed the National Security Presidential Memorandum on February 4, which aims to increase pressure on the Iranian regime.
In tandem with the sanctions, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released an updated advisory. This advisory is designed to aid U.S. and international financial institutions in identifying and reporting suspicious financial activities related to Iran’s illicit operations. It outlines various forms of illegal financing as well as red flags indicative of Iranian oil smuggling, shadow banking, and the procurement of weapons and dual-use components.
“We will continue to deny Iran access to financial networks and the global banking system as long as they engage in destabilizing activities,” a Treasury spokesperson stated. “We remain committed to holding accountable those who undermine international peace and security.”
The sanctions implement Executive Order (E.O.) 13902, which specifically targets Iran’s financial, petroleum, and petrochemical sectors. This action is a clear demonstration of the Biden administration’s ongoing campaign to maximize pressure on Iran.
For more details, please refer to the Treasury’s Press Releases. As tensions continue to rise, the U.S. positions itself firmly against any behavior that threatens stability in the region.
