The U.S. Department of the Treasury's Office of Foreign Assets Control has designated 35 entities and individuals involved in Iran's shadow banking architecture, targeting networks that Treasury says move the equivalent of tens of billions of USD through the international financial system to support sanctions evasion, illicit oil sales, procurement of sensitive missile and weapons components, and transfers to Iran's terrorist proxies. OFAC also issued guidance warning that toll payments to the Government of Iran or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz can create sanctions exposure for U.S. and non-U.S. persons, including financial institutions. The designations, made under Executive Order 13902 and Executive Order 13224 as amended, cover rahbar companies that act for sanctioned Iranian banks by using overseas shell companies and front firms to process trade and oil payments. Treasury highlighted Farab Soroush Afagh Qeshm Company for Shahr Bank and a network that included UK-based Shuqun LTD, which transferred more than USD 70 million on behalf of the National Iranian Oil Company through 2024. It also named front companies tied to Bank Melli, including Fratello Carbone Trading Limited, which transferred more than USD 20 million for the same oil company, and took action against additional rahbar networks linked to Bank Sina, Bank Sepah and other sanctioned Iranian banks, as well as Nix Energy Limited and Tai Lung Trading Limited, which were used by Iranian exchange houses to move millions of dollars for sanctioned entities. All property and interests in property of the designated persons in the United States or in the possession or control of U.S. persons are blocked, and entities owned 50 percent or more by blocked persons are also blocked. U.S. persons are generally prohibited from transactions involving them, and violations can lead to civil or criminal penalties for U.S. and foreign persons. Treasury said the move builds on its January 15, 2026 shadow banking action and that OFAC has sanctioned about 1,000 Iran-related persons, vessels and aircraft since February 2025.
U.S. Department of the Treasury 2026-04-28
U.S. Department of the Treasury designates 35 people and companies tied to Iran's shadow banking and issues Strait of Hormuz sanctions warning
The U.S. Treasury’s Office of Foreign Assets Control has designated 35 entities and individuals involved in Iran’s shadow banking network that it says move tens of billions of dollars to support sanctions evasion, illicit oil sales, procurement of sensitive missile and weapons components, and funding for Iran’s terrorist proxies. Acting under Executive Orders 13902 and 13224 (as amended), OFAC targeted rahbar companies and front firms linked to sanctioned Iranian banks Shahr Bank, Bank Melli, Bank Sina, and Bank Sepah, as well as UK-based Shuqun LTD, Fratello Carbone Trading Limited, Nix Energy Limited, and Tai Lung Trading Limited. All property of designated persons in U.S. jurisdiction is blocked, U.S. persons are generally barred from dealings, and OFAC warned that toll payments to Iran or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz may create sanctions exposure for U.S. and non-U.S. persons, including financial institutions.