The United States has sanctioned nearly 50 entities and individuals forming a covert network used by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolutionary Guard Corps (IRGC) to gain illicit access to the international financial system. According to officials, Iran’s MODAFL and the IRGC generate revenue from illicit trade, leveraging a "shadow banking" network of Iranian exchange houses and numerous foreign cover companies under their control to funnel funds for terrorism and other activities that threaten global security.
"The Iranian regime uses its profits to advance a wide range of destabilizing activities, including terrorism, lethal plotting and transnational repression, the development, procurement, and proliferation of advanced weapons systems, extensive human rights abuses, and nuclear activities that lack any credible peaceful purpose," stated an official. This shadow banking revenue supports the Iranian regime's transfer of weapons and funds to militant proxies in the Middle East region, including Yemen’s Houthis who have continued attacks on global shipping. Additionally, it facilitates the transfer of deadly weapons to Russia for use in its conflict against Ukraine.
The United States will persist in targeting those involved in systemic money laundering supporting MODAFL, the IRGC, and other malign actors. The Department of the Treasury's actions are taken pursuant to Executive Order 13224. For more information, refer to Treasury’s press release.
