Treasury Targets Financial Network Supporting Iran’s Military

Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating a pair of Iranian financial facilitators and more than a dozen Hong Kong- and United Arab Emirates (UAE)-based individuals and entities for their roles in coordinating funds transfers, including from the sale of Iranian oil, that benefits the IRGC-Qods Force (QF), and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). Iranian “shadow banking” networks like these—run by trusted illicit financial facilitators—abuse the international financial system, and evade sanctions by laundering money through overseas front companies and cryptocurrency. The IRGC-QF and MODAFL use these proceeds to support regional terrorist proxy groups and develop advanced weapons systems, including ballistic missiles and unmanned aerial vehicles (UAVs), which threaten the security of U.S. forces and those of our allies.

“Iranian entities rely on shadow banking networks to evade sanctions and move millions through the international financial system,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “Under President Trump’s leadership, we will continue to disrupt these key financial streams that fund Iran’s weapons programs and malign activities in the Middle East and beyond.”

Today’s action is being taken pursuant to the counterterrorism authority Executive Order (E.O.) 13224, as amended, and marks the second round of sanctions targeting Iran’s shadow banking infrastructure since the President issued National Security Presidential Memorandum 2, directing a campaign of maximum pressure on Iran. The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007 for its support to multiple terrorist organizations, and its parent organization, the Islamic Revolutionary Guard Corps (IRGC), was designated pursuant to E.O. 13224 on October 13, 2017 for its support to the IRGC-QF. MODAFL was designated pursuant to E.O. 13224 on March 26, 2019 for assisting, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of the IRGC-QF. Treasury has acted against multiple shadow banking networks, including on July 9, 2025 when OFAC designated a similar shadow banking network shadow banking network involved in the movement of oil proceeds on behalf of the IRGC-QF, and June 6, 2025, OFAC designated a large network tied to the Iranian Zarginhalam brothers that laundered billions through exchange houses and front companies on behalf of the IRGC-QF and other sanctioned Iranian entities.