US imposes sanctions on Iran's 'shadow banking' system

The US has announced a new list of sanctions as part of Operation 'Economic Fury' against Iran. The US Department of the Treasury targeted Iran's 'shadow banking' system, placing 35 entities and individuals on the sanctions list.

It was reported that the entities and individuals added to the sanctions list manage Iran's shadow banking system, enable the country to evade sanctions, and facilitate the execution of tens of billions of dollars in transactions.

It was stated that these entities and individuals allow the Iranian armed forces, including the Islamic Revolutionary Guard Corps, to access the international financial system to receive payments from illicit oil sales, purchase sensitive components for missiles and other weapons systems, and transfer funds to Iran's proxy groups.

US Treasury Secretary Scott Bessent stated, 'Iran's shadow banking system serves as a vital financial lifeline for its armed forces and enables activities that disrupt global trade and fuel violence in the Middle East. The illicit funds transferred through this network support the regime's ongoing operations and pose a direct threat to US personnel, regional allies, and the global economy. Financial institutions are warned: any institution that facilitates the business of these networks or has dealings with them risks facing serious consequences.'