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WASHINGTON - The United States imposed sanctions on 16 people and 10 entities accused of helping Iran move oil revenue and foreign currency through an international network of banks, exchange houses and shell companies.
The measures, announced October 15 by the U.S. Treasury Department under Operation Economic Outcast, target an Iraqi bank, two Iranian offshore banks, oil intermediaries and financial operatives working across the Middle East and Asia.
The Treasury Department said the network moved hundreds of millions of dollars and helped Iran retain access to hard currency despite sanctions. Reuters reported that the package covers 16 individuals and 10 entities.
Iraqi Bank Accused of Providing Dollar Access
A central target is Baghdad-based International Development Bank for Investment and Finance, known as IDB. Treasury accused the bank of providing financial services and access to U.S. dollars for Iran while maintaining ties to Iranian government entities and Iran-aligned militia groups in Iraq.
According to Treasury, IDB previously used Iraq’s now-dissolved U.S. dollar wire auction and was established with Iranian capital to support the Iranian economy. The department alleged that profits were transferred back to Iran in dollars.
IDB was designated under Executive Order 13902 for operating in Iran’s financial sector.
The sanctions also cover Jazireh International Bank Company and Chabahar International Bank Overseas Company. Washington described them as Iranian offshore banks authorized to conduct foreign-currency operations in free-trade zones and said they were used to help evade sanctions.
Oil Revenue Moved Through Gold and Cash
Iranian oil intermediary Sayyed Ruhollah Razavi was also sanctioned. Treasury said Razavi helped sell Iranian oil and move the proceeds through Iran’s clandestine banking system, using shell companies as well as cash and gold couriers.
The department said funds moved through Hong Kong to the United Arab Emirates and Turkey, where they were converted into gold and cash before being transported to Iran and Iranian proxy groups.
Two companies managed by Razavi - Tejarat Gostar Atlas Parsian Kish Company and Farzanegan Energy Pars Company - were also designated.
Treasury additionally sanctioned seven employees of Farab Sorough Qeshm Company, an affiliate of Iran’s Shahr Bank, alleging that they coordinated foreign-exchange transactions for Iranian oil sellers and brokers. Hong Kong-based Elitesphere Trading Co. was designated for allegedly moving funds through a network of brokers and front companies.
Cuban Bank Also Targeted
In a coordinated action, the U.S. State Department designated Cuba-based Banco Internacional de Comercio, or BICSA. U.S. officials said the bank had provided services to Iran’s previously sanctioned Karafarin Bank since at least 2022.
The package also covers several Iranian exchange houses and their owners or operators. Treasury accused those businesses of processing transactions worth tens or hundreds of millions of dollars for Iranian financial institutions and sanctions-evasion networks.
Assets Blocked, Transactions Prohibited
Property and financial interests belonging to the designated people and entities that are in the United States or controlled by U.S. persons are blocked and must be reported to the Treasury Department’s Office of Foreign Assets Control.
U.S. citizens and companies are generally prohibited from dealing with the sanctioned parties unless authorized. Companies owned 50% or more by blocked persons are also subject to restrictions, while foreign financial institutions may face secondary sanctions for knowingly facilitating significant transactions on behalf of those designated.
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