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.



Iran Says Continuing Uranium Enrichment on Its Soil 'Red Line'

People walk at the Grand Bazaar in Tehran on June 3, 2025. (AFP)
People walk at the Grand Bazaar in Tehran on June 3, 2025. (AFP)
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Iran Says Continuing Uranium Enrichment on Its Soil 'Red Line'

People walk at the Grand Bazaar in Tehran on June 3, 2025. (AFP)
People walk at the Grand Bazaar in Tehran on June 3, 2025. (AFP)

Foreign Minister Abbas Araghchi said Tuesday that Iran's right to enrich uranium on its soil was a "red line" after the United States submitted its proposal for a new nuclear deal.

"Continuing enrichment on Iranian soil is our red line," Araghchi said while on a visit to Lebanon, adding that his country will respond to the proposal in the coming days based on Iran's "principled positions and the interests of the Iranian people".

US President Donald Trump on Monday reiterated that Iran will not be allowed any enrichment of uranium under a potential deal with Washington.

Araghchi said the US proposal, submitted through mediator Oman, has "many ambiguities and questions".

On Saturday, Iran said it received "elements" of a US proposal for a nuclear deal following five rounds of talks that started in April and were mediated by Oman.

Uranium enrichment has remained a key point of contention between Washington and Tehran in the talks to seal a nuclear deal, with Iran defending what it says is its right to pursue a peaceful nuclear energy program and the US calling it a "red line".

"We will not ask anyone for permission to continue enriching uranium in Iran. However, we are ready to take steps... to ensure that this enrichment will not lead to the production of nuclear weapons," Araghchi said.

Araghchi was visiting Beirut following a stop in Cairo on Monday, where he met with Rafael Grossi, the head of the International Atomic Energy Agency (IAEA).

Grossi on Monday called for more transparency from Iran following a leaked report that showed Tehran had increased production of highly enriched uranium.

The IAEA report showed that Iran has ramped up production of uranium enriched up to 60 percent purity -- close to the roughly 90 percent level needed for atomic weapons.

Western countries, including the United States, have long accused Iran of seeking to acquire nuclear weapons, while Iran insists its nuclear program is for peaceful purposes.