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.



Israel Tells Worried Members of Iran’s Security Services to Contact Mossad

 Huge smoke rises up from an oil facility facility after it appeared to have been hit by an Israeli strike Saturday, in southern Tehran, Iran, Sunday, June 15, 2025. (AP)
Huge smoke rises up from an oil facility facility after it appeared to have been hit by an Israeli strike Saturday, in southern Tehran, Iran, Sunday, June 15, 2025. (AP)
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Israel Tells Worried Members of Iran’s Security Services to Contact Mossad

 Huge smoke rises up from an oil facility facility after it appeared to have been hit by an Israeli strike Saturday, in southern Tehran, Iran, Sunday, June 15, 2025. (AP)
Huge smoke rises up from an oil facility facility after it appeared to have been hit by an Israeli strike Saturday, in southern Tehran, Iran, Sunday, June 15, 2025. (AP)

The Israeli military is urging members of the Iranian security services to contact Israel’s Mossad intelligence service, claiming they had been receiving messages from officials worried about Iran’s “uncertain future.”

There was no immediate way to independently verify the claim.

In a post on the social platform X in Farsi, the Israeli military provided a website and urged users to employ a virtual private network before attempting contact.

“Even those who identify themselves as members of the regime’s security institutions express their fear, despair, and anger at what is happening in Iran and ask us to contact Israeli authorities - so that Iran does not suffer the same fate as Lebanon and Gaza,” the message added.

The message did not elaborate. However, it comes as Iran is in a frenzy over spies, prompting warnings to officials to abandon certain devices, apps and web services.

The internet was down in Iran late Wednesday afternoon. Authorities offered no immediate explanation.