The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned over 30 individuals and entities connected to Iranian brothers Mansour, Nasser, and Fazlolah Zarringhalam. These parties have allegedly laundered billions through international financial systems via Iranian exchange houses and foreign front companies as part of Iran’s "shadow banking" network. This network reportedly helps Iran evade sanctions and fund its nuclear and missile programs.
Secretary of the Treasury Scott Bessent stated, “Iran’s shadow banking system is a critical lifeline for the regime through which it accesses the proceeds from its oil sales, moves money, and funds its destabilizing activities.” He emphasized that the Treasury will use all available tools to disrupt this network.
The action is taken under Executive Orders 13902 and 13846, marking the first sanctions on Iran's shadow banking infrastructure since National Security Presidential Memorandum 2 directed maximum pressure on Iran.
Iran's shadow banking networks allow sanctioned persons to access international financial systems. These networks involve exchange houses using front companies in Hong Kong and UAE to make or receive payments for sanctioned goods. Such practices reportedly lead to corruption affecting the Iranian populace.
Mansour and Nasser Zarringhalam manage significant exchange operations through GCM Exchange and Berelian Exchange, facilitating transactions for Iran's main oil exporters. They are accused of assisting entities like the Islamic Revolutionary Guard Corps-Qods Force in evading sanctions.
Additionally, Fazlolah Zarringhalam operates Zarrin Ghalam Exchange in Iran. The exchanges run by these brothers support various Iranian military organizations by handling foreign currency exchanges.
Several Hong Kong-based front companies such as Hero Companion Limited have been implicated in assisting Iranian oil sales. UAE-based companies like Wide Vision General Trading L.L.C are also linked to these operations.
OFAC has designated several family members involved in these businesses under Executive Order 13902 due to their roles in sectors like petroleum and construction within Iran's economy.
As a result of these actions, properties related to these individuals or entities within U.S. jurisdiction are blocked. Transactions involving them are generally prohibited unless authorized by OFAC. Violations could result in civil or criminal penalties.
OFAC maintains that its goal is not punitive but aims at encouraging behavioral change by offering a process for removal from sanctions lists upon compliance with relevant laws.
