Treasury Targets 10 Iran-Linked Entities in Dollar Network Sanctions

The U.S. Treasury added 10 Iran-connected entities and 16 people to its sanctions list Thursday, targeting banks and intermediaries tied to dollar access and oil proceeds.

The designated banks include Iraq’s International Development Bank for Investment and Finance (IDB), Jazireh International Bank Company and Chabahar International Bank Overseas Company. Treasury alleged IDB provided Iran with financial services and access to U.S. dollars, and maintained connections to Iranian government entities and Iran-aligned militia groups in Iraq.

Treasury described Jazireh and Chabahar as offshore lenders operating in free-trade zones and using foreign currency. Jazireh is affiliated with Bank Mellat, while Chabahar is affiliated with Bank Shahr.

The designations also cover Sayyed Ruhollah Razavi, an oil intermediary; seven employees involved in foreign-exchange operations; and Hong Kong company Elitesphere Trading Co., Limited. Treasury alleged the networks moved hundreds of millions of dollars through shell companies and currency specialists across the Middle East and Asia.

Property of designated parties within U.S. jurisdiction generally must be blocked, and U.S. persons are generally prohibited from transactions with them. The Office of Foreign Assets Control (OFAC) authorized transactions ordinarily needed to wind down dealings involving IDB through 12:01 a.m. ET Oct. 30 (0401 UTC). Payments to blocked persons must be placed in blocked accounts.

Separate actions on Thursday included a State Department designation of Cuba-based Banco Internacional de Comercio S.A. under a Cuba-related authority. Treasury said the bank had provided services to Iran-based Karafarin Bank since at least 2022.

The Financial Crimes Enforcement Network (FinCEN) also issued an alert asking financial institutions to report possible abuse of religious-charity networks, including khums, or religious tithes. The alert lists suspicious transaction patterns but cautions that one indicator alone does not establish illicit activity. It also says legitimate charities should retain access to financial services.

Treasury launched Operation Economic Outcast on Aug. 24. Its initial action covered nearly 60 entities, individuals and vessels, while naming digital assets, technology, gold, aviation and shipping as sectors for expanded sanctions work.

On Sept. 17, OFAC designated Iranian crypto platform BitBank. Treasury alleged the platform facilitated transfers worth hundreds of millions of dollars in Bitcoin (BTC) to the Islamic Revolutionary Guard Corps (IRGC) between June and July.

Treasury Secretary Scott Bessent said, “The noose is tightening around Iran’s economy, and not even Iran’s so-called allies can save it.”