The United States has imposed sanctions on over 35 individuals and entities with ties to a network involved in money laundering on behalf of the Iranian regime. The network, which has laundered billions of dollars through Iranian exchange houses and foreign front companies, has been designated under Executive Order (E.O.) 13902.
As part of this network, two brothers, Jalal Zarringhalam and Mohammad Zarringhalam, along with their associates, have used numerous UAE- and Hong Kong-based front companies to help designated Iranian persons generate revenue from the sale of petroleum and other commodities subject to U.S. sanctions. This is the first action against Iran's shadow banking network since the President issued National Security Presidential Memorandum on February 4.
The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has also updated an Advisory to help U.S. and international financial institutions identify and report suspicious activities related to Iranian illicit financial activities. The Advisory includes information on forms of illicit finance, as well as red flags associated with Iranian oil smuggling, shadow banking, and procurement of weapons and dual-use components.
The U.S. will continue to deny Iran access to financial networks and the global banking system as long as it continues its destabilizing activities. The latest action is part of a campaign of maximum pressure on Iran, as ordered by National Security Presidential Memorandum 2.
The Treasury Department has stated that the sanctions are aimed at promoting accountability for those who seek to undermine international peace and security. The move follows previous actions taken against Iran's financial sector and petroleum industry.
For more information, please refer to the Treasury's Press Releases section.