The US government on Tuesday said it was imposing sanctions on 35 entities and individuals for their role in Iran's shadow banking architecture, accusing them of facilitating the movement of tens of billions of dollars tied to sanctions evasion and Iran's sponsorship of terrorism, Report informs via Reuters.
The Treasury Department's Office of Foreign Assets Control also warned any firm making "toll" payments to the Iranian government or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz would face significant sanctions.
The Treasury Department said the sanctions announced on Tuesday were aimed at networks that allowed Iran's armed forces, including the IRGC, to access the international financial system to receive payment for illicit oil sales, purchase sensitive components for missiles and other weapons systems, and transfer money to Iran's proxies.
"Iran's shadow banking system serves as a critical financial lifeline for its armed forces, enabling activities that disrupt global trade and fuel violence across the Middle East," Treasury Secretary Scott Bessent said in a statement.
"Illicit funds funneled through this network support the regime's ongoing terrorist operations, posing a direct threat to US personnel, regional allies, and the global economy," he said, adding any institution that facilitated or engaged with these networks was at risk of "severe consequences."