The U.S. Targets Shadow Banking Network Linked to Iran with New Sanctions

The United States has imposed new sanctions on over 30 individuals and entities allegedly involved in a shadow banking network that has facilitated money laundering activities on behalf of Iran, the Treasury Department announced on Friday.

The sanctions specifically target Iranian nationals, as well as entities based in the United Arab Emirates and Hong Kong. This action comes as the Trump administration continues its efforts to renegotiate a nuclear deal with Iran. The Treasury Department noted that at least two of the companies identified are linked to Iran’s national tanker company.

Treasury Secretary Scott Bessent stated, “Iran’s shadow banking system is a critical lifeline for the regime through which it accesses the proceeds from its oil sales, moves money, and funds its destabilizing activities.”

The U.S. government believes that this network plays a significant role in funding Iran’s nuclear and missile programs, as well as supporting militant groups across the Middle East. These sanctions mark the first round of measures targeting the shadow banking infrastructure since the re-implementation of maximum pressure on Iran earlier this year.

While discussions between Iran and the U.S. aim to address long-standing disputes over Tehran’s nuclear ambitions, progress has been hindered by disagreements surrounding uranium enrichment.

The Treasury Department identified the individuals and entities in question as being associated with the Zarringhalam brothers – Mansour, Nasser, and Fazlolah – who have collectively laundered billions of dollars through the international financial system. The brothers are known to operate exchange houses in Iran, along with a network of front companies in Hong Kong and the UAE.

Front companies within this network are reported to maintain accounts in multiple currencies at various banks to facilitate transactions for blocked Iranian entities involved in the sale of oil. As part of the sanctions, Ace Petrochem FZE and Moderate General Trading LLC, both based in the UAE, have been added to the Specially Designated Nationals list by the Office of Foreign Assets Control (OFAC).

These actions serve to freeze any U.S. assets held by the designated companies, both of which are linked to the state-owned National Iranian Tanker Company, already subject to U.S. sanctions for its role in exporting Iranian oil.

Iran’s mission to the United Nations in New York has not yet responded to requests for comments on the matter. Reuters was unable to reach the Zarringhalam brothers for their input.

Overall, these sanctions represent a continued effort by the U.S. to target illicit financial activities that support Iran’s destabilizing actions in the region. The Treasury Department remains vigilant in its efforts to disrupt networks that enable Iran to pursue its nuclear ambitions and fund militant proxies.

(Reuters/Reporting by Katharine Jackson, Timothy Gardner and Ryan Patrick Jones; writing by Susan Heavey; editing by Paul Simao and Sharon Singleton)