U.S. Treasury Department Sanctions 35 Linked to Iran’s ‘Shadow Banking’ Network

ERBIL (Kurdistan24) — The U.S. Department of the Treasury announced on Tuesday sweeping new sanctions targeting 35 entities and individuals accused of operating within Iran’s “shadow banking” system, a network Washington says enables sanctions evasion and funds militant activities.

In a statement, the Treasury’s Office of Foreign Assets Control (OFAC) said the measures are part of its ongoing “Economic Fury” campaign, aimed at disrupting financial channels that allegedly allow Iran to move tens of billions of dollars outside formal oversight.

According to the Treasury, the network facilitates access to the global financial system for Iranian institutions, including the Islamic Revolutionary Guard Corps, enabling payments for illicit oil sales, procurement of sensitive military components, and funding for allied armed groups across the region.

“Iran’s shadow banking system serves as a critical financial lifeline for its armed forces,” Treasury Secretary Scott Bessent said, warning that institutions engaging with such networks could face “severe consequences.”

The sanctions were imposed under Executive Orders 13902 and 13224, which authorities used to target Iran’s financial sector and counter terrorism financing. Officials said the move builds on earlier action taken in January 2026 against networks linked to major Iranian banks.

U.S. authorities said the system relies on intermediaries known as “rahbars,” which operate extensive webs of shell companies and foreign bank accounts to process payments for sanctioned Iranian trade. These networks are said to coordinate closely with exchange houses and front companies to facilitate transactions tied to Iran’s oil exports and other commodities.

Among those identified was Farab Soroush Afagh Qeshm Company, described as a key operator managing transactions for Bank-e Shahr through overseas front companies. The Treasury also cited the role of firms involved in financing and facilitating Iranian oil shipments, as well as individuals accused of laundering funds through the network.

The action is part of a broader U.S. strategy under National Security Presidential Memorandum 2 to intensify economic pressure on Iran. Since February 2025, OFAC has sanctioned roughly 1,000 Iran-linked individuals, entities, vessels, and aircraft, the statement said.

In parallel, the Treasury issued a warning regarding payments to Iranian authorities or affiliated groups for transit through the Strait of Hormuz, cautioning that such transactions could expose companies and financial institutions to sanctions risks.