US Sanctions On Banking Networks Related To Billions Of Dollars For Iran's Military

ILLUSTRATION OF UNSPLASH/Erol Ahmed

JAKARTA - The United States (US) has imposed sanctions on nearly 50 entities and people suspected of pouring billions of dollars into Iran's military.

The US Treasury Department said those targeted were shadow banking networks' used by the Iranian Armed Forces Ministry of Defense and Logistics (MODAFL) and the Islamic Revolutionary Guard Corps (IRGC), both under US sanctions.

The network helps MODAFL and IRGC, which make money mainly from oil sales and petrochemicals, gain access to international financial systems and process billions of dollars since 2020, the Treasury said.

The Treasury Department said revenue generated by MODAFL and IRGC through Iran's exchange agency network and foreign companies supported the supply of weapons and funding to Iranian proxy groups, including Yemen's Houthis, and drone transfers to Russia for use in the fight against Ukraine.

Washington has issued a series of sanctions targeting Iranian and Houthi drones, which launch drone and missile attacks on cruise lines.

"We continue to work closely with allies and partners, as well as the global financial industry, to increase awareness of the movement of funds that support terrorism," Deputy Finance Minister Wally Adeyemo said in a statement.

Iran's mission to the United Nations in New York has yet to comment on the move.

The sanctions have targeted dozens of companies in Hong Kong, United Arab Emirates, and the Marshall Islands, as well as companies based in Iran and Turkey.

The Treasury Department said the MODAFL Supply Division used exchange agencies in Iran that manage many jurisdiction-listed companies such as Hong Kong or UAE to launder earnings, including from oil sales carried out by Sahara Thunder, which was sanctioned by the US in April.