US slaps sanctions on network accused of moving billions for Iran's IRGC

The US, following the implementation of sanctions, said that the action targets Iran's vast shadow banking system used to support Iran's military.

 Members of the Islamic Revolution Guards Corps (IRGC) navy participate in an exercise in Abu Musa Island, in this picture obtained on August 2, 2023. (photo credit: IRGC/WANA/via Reuters)
Members of the Islamic Revolution Guards Corps (IRGC) navy participate in an exercise in Abu Musa Island, in this picture obtained on August 2, 2023.
(photo credit: IRGC/WANA/via Reuters)

The United States on Tuesday imposed sanctions on nearly 50 entities and people it accused of moving billions of dollars for Iran's military as Washington seeks to increase pressure on Tehran.

The US Treasury Department, in a statement, said those targeted on Tuesday constitute a "shadow banking network" used by Iran's Defense Ministry and Armed Forces Logistics (MODAFL) and Islamic Revolutionary Guard Corps (IRGC), both of which are under US sanctions.

The network helped MODAFL and IRGC gain access to the international financial system and process the equivalent of billions of dollars since 2020, the Treasury said.

Sanctions impact international companies, including China, UAE

"The United States is taking action against a vast shadow banking system used by Iran’s military to launder billions of dollars of oil proceeds and other illicit revenue," Deputy Treasury Secretary Wally Adeyemo said in the statement.

Tuesday's action targeted dozens of cover companies in Hong Kong, the United Arab Emirates and Marshall Islands, as well as Iran and Turkey-based firms.

 Iran's Supreme Leader, Ayatollah Ali Khamenei looks at an Iranian drone during his visit to the IRGC Aerospace Force achievements exhibition in Tehran, Iran November 19, 2023.  (credit: Office of the Iranian Supreme Leader/WANA via REUTERS)
Iran's Supreme Leader, Ayatollah Ali Khamenei looks at an Iranian drone during his visit to the IRGC Aerospace Force achievements exhibition in Tehran, Iran November 19, 2023. (credit: Office of the Iranian Supreme Leader/WANA via REUTERS)

The move freezes any of their US assets and generally bars Americans from dealing with them. Those that engage in certain transactions with them also risk being hit with sanctions.