The Treasury Department imposed sanctions on 35 entities accused of operating a shadow banking network across Iran. According to the Treasury, the 35 entities facilitate the movement of tens of billions of dollars connected to sanctions evasion and sponsoring terrorism.
“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,” said Treasury Secretary Scott Bessent. “Illicit funds funneled through this network support the regime’s ongoing terrorist operations, posing a direct threat to U.S. personnel, regional allies, and the global economy. Financial institutions are on notice: Any institution that facilitates or engages with these networks is at risk of severe consequences.”
Those targeted include the Farab Soroush Afagh Qeshm Company, which oversees the movement of funds for Shahr Bank’s clients through a network of foreign front companies, the Treasury described. The Department explained that the Farab Soroush Afagh Qeshm Company serves as a “rahbar,” or a private entity that manages overseas shell companies and coordinates with Iranian exchange houses and fronts to facilitate payments.
The development comes as the Treasury Department sanctioned a Chinese refinery and 40 shipping firms and vessels that had been providing oil materials to Iran. “Economic Fury is imposing a financial stranglehold on the Iranian regime, hampering its aggression in the Middle East, and helping to curtail its nuclear ambitions,” Bessent said of the action. “At President Trump’s direction, Treasury will continue to constrict the network of vessels, intermediaries, and buyers Iran relies on to move its oil to global markets. Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions.”
