US sanctions 35 entities, individuals to curb Iran's ‘shadow banking’

The US on Tuesday has announced fresh sanctions targeting Iran's alleged "shadow banking architecture," with the Treasury Department blacklisting 35 individuals and organizations accused of facilitating these operations.

The sanctioned entities and individuals "oversee Iran's shadow banking architecture, facilitating the movement of the equivalent of tens of billions of dollars tied to sanctions evasion," said a Treasury statement.

The statement said that Iranian banks depend on private firms called "rahbars" to process payments for sanctioned Iranian trade by using shell company accounts in foreign banks.

It added that these transactions are frequently carried out on behalf of entities such as the Islamic Revolutionary Guard Corps, the National Iranian Oil Company, and other organizations sanctioned by the US.

"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," Treasury Secretary Scott Bessent said in the statement.

"Financial institutions are on notice: Any institution that facilitates or engages with these networks is at risk of severe consequences," he added.

The sanctions predate the current US and Israeli war on Iran, which they launched on Feb. 28, and is now in a ceasefire to give efforts to reach a peace deal a chance.