The U.S. Sanctions the IRGC and Ministry of Defense's Money Laundering Network

On Tuesday, July 5, the United States imposed sanctions on nearly 50 entities and individuals accused of transferring billions of dollars in favor of the armed forces of the Islamic Republic. According to the U.S. Treasury Department's website, the department stated in a statement that those sanctioned are part of a "shadow banking network" used by the Ministry of Defense and Armed Forces Logistics of the Islamic Republic and the Islamic Revolutionary Guard Corps (IRGC). Both the Ministry of Defense and the IRGC are already under U.S. sanctions. The U.S. Treasury said this network has helped the Islamic Republic's Ministry of Defense and the IRGC access the international financial system and process the equivalent of billions of dollars since 2020. Wally Adeyemo, the U.S. Deputy Treasury Secretary, stated, "The United States is acting against a vast shadow banking system that the Iranian armed forces use to launder billions of dollars of oil revenues and other illegal income." According to Reuters, the U.S. Treasury's action on Tuesday targeted dozens of shell companies in Turkey, the United Arab Emirates, Hong Kong, the Marshall Islands, and Iran. The imposed sanctions block any assets of these companies in the U.S. and generally prohibit U.S. citizens from dealing with them. Meanwhile, those who engage in specific transactions with them also risk future sanctions. The new EU sanctions against 9 individuals and entities; the commander of the Quds Force and the Minister of Defense have been sanctioned. The U.S. sanctioned four entities and one individual active in the Islamic Republic's drone program. Canada imposed new sanctions against entities and military officials of the Islamic Republic. The UK imposed new sanctions against the Islamic Republic's drone and missile industries.