The U.S. State Department, under the leadership of Secretary of State Antony Blinken, will enforce sanctions against 39 entities suspected of aiding Iranian clients in illegal trade practices. These “shadow banking” entities, situated across numerous countries, allow sanctioned Iranian companies to access the global financial system and hide their transactions with foreign clients. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) will execute the sanctions, indicating a commitment to enforcing sanctions on Iran and dismantling the overseas networks it employs to evade sanctions.
To facilitate commerce for their Iranian clients and avoid U.S. sanctions, Iranian currency exchange businesses establish front companies abroad, which have allowed the Iranian government to profit from various industries. The State Department noted that it plans to continue thwarting attempts to bypass U.S. sanctions. The Treasury Department identified Persian Gulf Petrochemical Industry Commercial Co. (PGPICC) and Triliance Petrochemical Co., Ltd. (Triliance) as the organizations being used to obscure U.S. trade sanctions. According to Deputy Secretary of the Treasury Wally Adeyemo, “Iran cultivates complex sanctions evasion networks where foreign buyers, exchange houses, and dozens of front companies cooperatively help sanctioned Iranian companies to continue to trade.”
Additionally, Iran has garnered attention after it was discovered that it had docked warships off the coast of Brazil, an act that sparked controversy among democratic nations in the region. Political and security experts attribute the warships’ presence to a recent wave of left-leaning politicians in Latin America, including Brazil’s current president. Observers suggest that Iran is following through on its commitment to anchor warships in the Panama Canal by the end of 2023. Former Brazilian Foreign Minister Ernesto Araujo expressed concern about the situation.
US sanctions 39 entities aiding Iran trade.
