The U.S. Sanctions 50 Individuals and Entities Linked to Iran's Military Financing

The U.S. Treasury Department has sanctioned nearly 50 individuals and entities involved in laundering "billions of dollars" from Iran's oil exports for the military institutions of the Islamic Republic. According to a statement published on Tuesday, July 5, on the U.S. Treasury's website, the sanctioned individuals and entities from various countries have been involved in creating a "shadow banking network" on behalf of the Ministry of Defense and Armed Forces Logistics, as well as the Islamic Revolutionary Guard Corps (IRGC), to secure billions of dollars in funding for the development of Iran's military sector. Wally Adeyemo, the Deputy Secretary of the Treasury, stated that this network has facilitated the access of Iran's military institutions to the international financial network for laundering billions of dollars from oil resources and other illegal revenues since 2020. The sanctions on Tuesday added a wide range of individuals and entities based in Hong Kong, the UAE, the Marshall Islands, Iran, and Turkey to the blacklist. This new action blocks the assets of these individuals and companies in the United States and generally prohibits Americans from dealing with them. Those who conduct transactions with them also face secondary sanctions. The list includes four Iranians who have all been connected to the Ministry of Defense and Armed Forces Logistics. An internet search reveals that these individuals are currency exchange owners named Seyed Reza Mir Mohammad Ali, Siavash Nourian, Ramin Jalalian, and Seyed Mohammad Masnavi Najibi. The Treasury report also mentions their exchange offices, which are active in Iran and the UAE and have also been sanctioned. Among the foreign companies, 13 are registered in the UAE, 20 in Hong Kong, and the rest in Turkey and the Marshall Islands. Numerous reports have emerged regarding the Islamic Republic and its military institutions using international brokers to sell oil and manage related financial transactions. A significant portion of Iran's oil revenues is wasted in these money laundering networks. For example, statistics from tanker tracking companies indicate that Iran exported over 1.5 million barrels of crude oil, gas condensates, and fuel oil daily last year, which should have brought at least $46 billion in revenue to Iran based on global oil prices. However, customs statistics show that Iran only had $36 billion in oil revenue last year, indicating that nearly one-fifth of oil revenues were lost to brokers or discounted oil sales to Chinese refineries.