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.



Pakistani Security Forces Kill 3 Militants Linked to 2024 Attack on Chinese in Karachi

File photo: Pakistani Army and security officials stand guard as the opposition party Pakistan Tehrik-e-Insaft (PTI) continue their protest for the third day demanding release of former Prime Minister Imran Khan, in Islamabad, Pakistan, 06 October 2024. EPA/SOHAIL SHAHZAD
File photo: Pakistani Army and security officials stand guard as the opposition party Pakistan Tehrik-e-Insaft (PTI) continue their protest for the third day demanding release of former Prime Minister Imran Khan, in Islamabad, Pakistan, 06 October 2024. EPA/SOHAIL SHAHZAD
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Pakistani Security Forces Kill 3 Militants Linked to 2024 Attack on Chinese in Karachi

File photo: Pakistani Army and security officials stand guard as the opposition party Pakistan Tehrik-e-Insaft (PTI) continue their protest for the third day demanding release of former Prime Minister Imran Khan, in Islamabad, Pakistan, 06 October 2024. EPA/SOHAIL SHAHZAD
File photo: Pakistani Army and security officials stand guard as the opposition party Pakistan Tehrik-e-Insaft (PTI) continue their protest for the third day demanding release of former Prime Minister Imran Khan, in Islamabad, Pakistan, 06 October 2024. EPA/SOHAIL SHAHZAD

Pakistani security forces in an overnight raid killed three suspected militants accused of orchestrating last year's attack in which two Chinese nationals working in a textile mill in the southern port city of Karachi were wounded, officials said on Monday.

Azad Khan, a senior official with the Counter-Terrorism Department, said the dead insurgents included the alleged mastermind of the November 2024 attack, The Associated Press said.

He identified that person only as Zafran and said he was from the Pakistani Taliban, who are known as Tehrik-e-Taliban Pakistan or TTP and are allies of the Afghan Taliban, who seized power in Afghanistan in 2021.

China has repeatedly pressed Pakistan to improve security for its nationals working on major infrastructure projects under Beijing’s multibillion-dollar Belt and Road Initiative, which include roads, railways and power plants.

Chinese nationals have increasingly come under attack by militant groups, including TTP and the separatist Balochistan Liberation Army — banned by the Pakistani authorities and also designated as terrorist groups by the United States.

Pakistan has pledged to bolster security measures for Chinese workers, including those employed at private factories.

Meanwhile, at least seven people were killed the previous day in Tirah Valley, a district in the northwestern Khyber Pakhtunkhwa province, Fiaz Khan, a local government official, said.

He said the violence erupted when hundreds of residents gathered outside a military camp to demand protection and justice after a child was killed in a mortar attack on the weekend. The crowd came under gunfire from “unknown gunmen,” Khan said.

He said the demonstrators accused security forces of opening fire when some people were throwing stones at the military camp, but police had yet to determine whose bullets caused the deaths. Khan said gunfire was also reported from nearby hills, and police suspect TTP may have been behind the shooting to sow discord between residents and the military.

The government has ordered a probe into the killings of demonstrators, he said.