US Targets ‘Shadow Banking’ Network Helping Iran Evade Sanctions

A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023.  (Reuters)
A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)
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US Targets ‘Shadow Banking’ Network Helping Iran Evade Sanctions

A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023.  (Reuters)
A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. (Reuters)

The United States on Thursday imposed sanctions on 39 entities, including many based in Hong Kong, that Washington said facilitate Iran's access to the global financial system, describing them as a "shadow banking" network that moves billions of dollars.

The US Treasury Department in a statement said those targeted had granted companies previously slapped with Iran-related sanctions, such as Persian Gulf Petrochemical Industry Commercial Co (PGPICC) and Triliance Petrochemical Co Ltd, access to the international financial system and helped them hide their trade with foreign customers.

The latest US move against Iran comes as efforts to revive the 2015 nuclear deal have stalled, while ties between Tehran and the West have become increasingly strained as Iranians keep up anti-government protests.

Washington has targeted Chinese companies over the export of Iran's petrochemicals as the prospects of reviving the nuclear pact have dimmed.

"Iran cultivates complex sanctions evasion networks where foreign buyers, exchange houses, and dozens of front companies cooperatively help sanctioned Iranian companies to continue to trade," said Deputy Treasury Secretary Wally Adeyemo.

He said the new measures showed the US commitment to enforcing sanctions and its "ability to disrupt Iran's foreign financial networks, which it uses to launder funds."

Liu Pengyu, spokesman for China's embassy in Washington said the US actions had no basis in international law and were "typical unilateral sanctions and illegal 'long-arm jurisdiction'" that were detrimental to Chinese interests.

"We deplore and reject this move," he said, adding China had "actively promoted peace talks and sought a political solution" in Ukraine, while the United States "has been fanning the flame and fueling the fight with more weaponry."

Iran's mission to the United Nations in New York did not immediately respond to a request for comment.

Thursday's move freezes any US assets of those designated and generally bars Americans from dealing with them. Those that engage in certain transactions with them also risk being hit by sanctions.

The Treasury accused companies operating out of Hong Kong - including Foraben Trading Limited, Hongkong Well International Trading Limited, and Salita Trade Limited - of transferring millions of dollars related to petrochemical sales to China.

The Treasury Department's top sanctions official, Brian Nelson, recently visited Türkiye to warn that Washington will continue to aggressively enforce its sanctions.

Among those designated on Thursday were two Türkiye-based entities, as well as Iran-based Mehr Petrochemical Company.

Brian O'Toole, a former Treasury Department official, said Thursday's action would put a dent in Iran's ability to keep moving oil and get paid for it.

"This is a pretty big deal, because this kind of thing should have an impact on what Iran is able to sell," O'Toole said.



Iranians React to New Trump Travel Ban as Tensions are High Between Nations

Iranians walk next to an anti-US mural depicting Iran and the US negotiation table next to the former US embassy  in a street in Tehran, Iran, 26 April 2025. EPA/ABEDIN TAHERKENAREH
Iranians walk next to an anti-US mural depicting Iran and the US negotiation table next to the former US embassy in a street in Tehran, Iran, 26 April 2025. EPA/ABEDIN TAHERKENAREH
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Iranians React to New Trump Travel Ban as Tensions are High Between Nations

Iranians walk next to an anti-US mural depicting Iran and the US negotiation table next to the former US embassy  in a street in Tehran, Iran, 26 April 2025. EPA/ABEDIN TAHERKENAREH
Iranians walk next to an anti-US mural depicting Iran and the US negotiation table next to the former US embassy in a street in Tehran, Iran, 26 April 2025. EPA/ABEDIN TAHERKENAREH

Iranians again face a US travel ban imposed by President Donald Trump, with the decision drawing anger, frustration and some shrugs given the decades of tensions between the countries.

Trump imposed a similar ban during his first term before withdrawing America unilaterally from Tehran's 2015 nuclear deal with world powers, under which Iran drastically limited its program in exchange for the lifting of economic sanctions.

But when he returned to the White House and began seeking a new deal with Iran, it saw the country’s rial currency improve and stocks rise, but worries have grown as its government appears poised to reject an initial American proposal.

The travel ban has further darkened that mood and led Iranians to fear Trump will lump the nations' 80 million people alongside of its theocratic government even after he's repeatedly praised them while seeking a deal.
“Now I understand that Trump is against all Iranians, and his attitude is not limited to the government,” said Asghar Nejati, a 31-year-old man working in a Tehran pharmacy.

Even in the years after the 1979 Iranian Revolution and subsequent US Embassy hostage crisis, Iranian students traveled to the US to attend universities. Between 2018 to 2024, an average of around 10,000 Iranian students went to the US annually.

Estimates suggest some 1 million Iranian-origin people live in the US today.

Mehrnoush Alipour, a 37-year-old graphic designer, said the nations could have better relations if they could speak to each other in softer tones.

“This is another foolish decision. Trump cannot reach his goals by imposing pressures on ordinary Iranians," she said. "The two nations can have better relations through openings, not restrictions.”

Bank teller Mahdieh Naderi said Trump was lashing out over his frustration efforts to reach ceasefires in the Israel-Hamas war and the Russia-Ukraine war.

“Trump just expressed his anger about his failed plans,” Naderi said. “He is complaining about the Chinese and others who are living in the US, too
Some said interest in the US was already waning before the latest ban.

“Over the past years, two of my grandchildren went to Canada to continue their education there," said Mohammad Ali Niaraki, 75. "Iranians are not limited in immigration and they are not as interested to go to the US as they were decades ago. Iranians prefer Canada, as well as neighboring countries with flourishing economies.”

But others pointed out that high-ranking government officials have children living or working in the US, despite the tensions.

“It’s fine, but if he also kicks out the children of officials who live there it would be very nice,” said a man who just gave his name as Mehdi. “We can’t afford traveling to the US, almost 80% of us can’t. But if he kicks out those who are already there it would be much better.”

Tehran resident Mehri Soltani offered rare support for Trump’s decision.

“Those who have family members in the US, it’s their right to go, but a bunch of bad people and terrorists and murderers want to go there as well,” he said. “So his policy is correct. He’s doing the right thing.”