Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has targeted six entities based in Hong Kong and China. These entities are involved in procuring unmanned aerial vehicle (UAV) components for Iranian firm Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI). The entities act as front companies to facilitate the purchase and shipment of essential components for PKGB and NSMI, which are key suppliers for Iran's UAV and ballistic missile programs.
The action supports President Trump's maximum pressure campaign on Iran by targeting efforts to reconstitute PKGB's procurement network post-designation. "Iran continues to try to find new ways to procure the key components it needs to bolster its UAV weapons program through new front companies and third-country suppliers," said Secretary of the Treasury Scott Bessent. "Treasury remains committed to disrupting the schemes that enable Iran to send its deadly weapons abroad to its terrorist proxies and other destabilizing actors."
This move was made under Executive Order 13382, aimed at proliferators of weapons of mass destruction (WMD) and their delivery means. It builds on previous actions taken against PKGB’s covert procurement network in August 2019 and February 2024.
PKGB was designated under E.O. 13382 on August 28, 2019, due to its CEO Hamed Dehghan's role in procuring military-grade electronic components for Rastafann Engineering Company, which supported the Islamic Revolutionary Guards Corps (IRGC). NSMI was designated on February 2, 2024, for being controlled by or acting on behalf of PKGB.
The Hong Kong-based front companies include Dingtai Industrial Technology Co Limited, Yonghongan Trade Limited, and Hong Kong Tianle International Co Limited. These companies have been involved in procuring U.S.-origin UAV-applicable items like valve assemblies, RF connectors, engines, vane turbines, vane compressors, blade turbines, blade compressors, and micro servos for PKGB.
NSMI received shipments from Hong Kong-based DDC Develop Industry Hong Kong Limited and PRC-based Shenzhen Zhiyu International Trade Co Ltd. JP Oriental International Holdings Limited also exported shipments over multiple years to NSMI.
As a result of these designations under E.O. 13382, all property and interests in property within U.S. jurisdiction belonging to these entities are blocked. Transactions involving these properties are generally prohibited unless authorized by OFAC.
Violations may lead to civil or criminal penalties for both U.S. and foreign persons. Financial institutions risk exposure if they engage with designated persons without authorization.
OFAC emphasizes that sanctions aim not just at punishment but at encouraging positive behavioral changes. Information about removal from OFAC lists is available through OFAC's resources.
