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)
TT
20

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.



Bodies of Four Migrants Found as Boat Sinks off Greek Island of Lesbos

A dinghy transporting dozens of refugees and migrants is pulled towards Greece's Lesbos island after being rescued by a war ship during their sea crossing between Türkiye and Greece on February 29, 2020. Aris Messinis, AFP/File picture
A dinghy transporting dozens of refugees and migrants is pulled towards Greece's Lesbos island after being rescued by a war ship during their sea crossing between Türkiye and Greece on February 29, 2020. Aris Messinis, AFP/File picture
TT
20

Bodies of Four Migrants Found as Boat Sinks off Greek Island of Lesbos

A dinghy transporting dozens of refugees and migrants is pulled towards Greece's Lesbos island after being rescued by a war ship during their sea crossing between Türkiye and Greece on February 29, 2020. Aris Messinis, AFP/File picture
A dinghy transporting dozens of refugees and migrants is pulled towards Greece's Lesbos island after being rescued by a war ship during their sea crossing between Türkiye and Greece on February 29, 2020. Aris Messinis, AFP/File picture

The bodies of four migrants - one boy, one girl and two women - have been recovered from a sinking boat off the Greek island of Lesbos while another 23 migrants were rescued, Greece's coastguard said on Thursday.

The boat was detected by a patrolling coastguard vessel at about 2 a.m. (2300 GMT). A search and rescue operation was still ongoing, a coastguard official said. It was not immediately clear how many people may have been on the boat, Reuters reported.

Greece, in the southeast corner of the European Union, has long been a favored gateway to Europe for migrants and refugees from the Middle East, Africa and Asia. In 2015 nearly 1 million people landed on its islands.

Last year, about 54,000 migrants reached Greece, the second largest number in southern Europe behind Italy. The vast majority of them arrived by sea, according to data from the UN refugee agency UNHCR.