The U.S. Department of the Treasury designated an Iraqi bank and a network of Iranian offshore banks, oil intermediaries, foreign exchange operators, shell companies and individuals under Executive Order 13902 for supporting Iran’s access to foreign currency, oil revenue and the international financial system. In a coordinated action, the U.S. Department of State designated Cuba-based Banco Internacional de Comercio for operating in Cuba’s financial services sector and providing services to designated Iran-based Karafarin Bank since at least 2022. Treasury identified Iraq-based International Development Bank for Investment and Finance as a source of U.S. dollar access for Iran with links to Iranian government entities and Iran-aligned militia groups. The action also covers two Iranian offshore banks authorized to conduct foreign currency operations, oil intermediary Sayyed Ruhollah Razavi and two companies he manages, as well as foreign exchange specialists, exchange houses and front companies that processed transactions worth tens or hundreds of millions of dollars through networks spanning Hong Kong, the United Arab Emirates and other jurisdictions. Property and interests in property of the designated persons within U.S. jurisdiction are blocked, as are entities owned 50% or more by one or more blocked persons. Transactions involving them are generally prohibited for U.S. persons or within the United States, while foreign financial institutions facilitating significant transactions on their behalf may face secondary sanctions, including restrictions on U.S. correspondent or payable-through accounts.
U.S. Department of the Treasury sanctions Iraqi bank and Iranian offshore and shadow finance networks
The U.S. Department of the Treasury sanctioned an Iraqi bank and Iranian offshore banks, oil intermediaries, exchange houses and shadow finance operators for facilitating Iran’s access to foreign currency and oil revenue. The U.S. Department of State separately designated a Cuban bank that serviced an Iranian bank. The measures block assets under U.S. jurisdiction and create secondary sanctions risks for foreign financial institutions facilitating significant transactions.