The United States Department of the Treasury has taken economic sanctions against 50 individuals and companies in Hong Kong, the United Arab Emirates, and the Marshall Islands for their alleged involvement in a shadow banking network that supports Iran’s military. These entities are accused of selling Iranian oil and petrochemicals, providing income that funds weapons and proxy groups, including Yemen’s Houthis and drone transfers to Russia. This financial support has been used for illicit purposes, including supplying drones to Russia for use in bombing Ukrainian civilians during the invasion of Ukraine.
Among those sanctioned is Seyyed Mohammad Mosanna’i Najibi, an Iranian-Turkish money-changer, as well as 27 cover companies controlled by Najibi in Hong Kong, the UAE, and the Marshall Islands. Additionally, a currency exchange business based in Tehran is also included in the sanctions. The Treasury’s actions deny these individuals and companies access to any property or financial assets in the US and prohibit US entities from engaging in business with them.
Treasury Deputy Secretary Wally Adeyemo emphasized the US’s commitment to pursuing those who finance Iran’s terrorist activities and collaborating with allies, partners, and the global financial industry to prevent the movement of funds supporting terrorism. The US has previously targeted Iranian shadow banking businesses, imposing sanctions on 39 firms in March 2023 that were involved in obfuscating financial activities between sanctioned Iranian entities and their foreign buyers, particularly in the petrochemical industry.
