WASHINGTON: The US on Wednesday said it imposed a new round of sanctions on a group of 20 people and firms allegedly involved in a financial facilitation network for the benefit of the Iranian military. The Treasury Department sanctions impact firms and people spanning Hong Kong to the United Arab Emirates.
Included in the sanctions package are employees, brokers and purchasers from Iranian firm Sepehr Energy, which is also subject to sanctions. The US alleges that Sepehr acts as a front company for the Iranian government’s oil sales, which “fund its destabilising regional activities and support of multiple regional proxy groups,” including Hamas and Hezbollah, according to a Treasury statement.
A representative from Sepehr Energy did not respond to an Associated Press request for comment.
The sanctions block access to US property and bank accounts and prevent the targeted people and companies from doing business with Americans. Iran engages in “illicit finance schemes to generate funds to fan conflict and spread terror throughout the region,” said Brian E. Nelson, Treasury’s under secretary for terrorism and financial intelligence. “The United States remains committed to exposing elements of the Iranian military and its complicit partners abroad to disrupt this critical source of funds,” he said.
The White House has said it has yet to uncover information that Iran, the principal financial and military sponsor of Hamas, was directly involved in the multipronged operation against Israel on October 7. However, the US has conducted strikes over the last several weeks against Iranian-tied weapons depots in Syria to retaliate for dozens of rocket and drone attacks that militant groups have launched since October 7 against US bases in Iraq and Syria.
Financial Network
MODAFL and the AFGS sell commodities through a network of front companies both inside Iran and abroad. Sepehr Energy Jahan Nama Pars Company (Sepehr Energy) oversees this activity for the AFGS. Sepehr Energy is headed by deputy chairman, principal board member, and managing director Majid A’zami (A’zami). A’zami is an Iranian oil ministry official. In mid-2023, Sepehr Energy employee Elyas Niroomand Toomaj arranged the sale of Iranian commodities with prospective buyers, including through the use of falsified certificates of origin.
Sepehr Energy relies upon the services of Iranian exchange houses to transfer funds to MODAFL-controlled bank accounts in coordination with the AFGS. Iranian exchange houses serve as key conduits in multijurisdictional Iranian “shadow banking” networks, establishing front companies abroad to enable trade for Iranian clients. Sepehr Energy also shipped products via the National Iranian Tanker Company (NITC), which was designated pursuant to E.O. 13224, as amended, on October 26, 2020 for its support to the IRGC-QF.
Iran-based Pishro Tejarat Sana Company (Pishro Tejarat) works with Sepehr Energy to facilitate the sale and shipment of commodities to overseas buyers, generating revenue for MODAFL and the Iranian military. Pishro Tejarat works on behalf of Sepehr Energy, in return for a portion of the profits. Seyyed Abdoljavad Alavi (Alavi) is the chairman of the board of directors of Pishro Tejarat.
Sepehr Energy Jahan Nama Pars Company and Seyyed Abdoljavad Alavi are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of MODAFL.
Majid A’zami is being designated pursuant to E.O. 13224, as amended, for being a leader or official of Sepehr Energy.
Elyas Niroomand Toomaj is being designated pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, Sepehr Energy.
Pishro Tejarat Sana Company is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Alavi.
See official press release: Treasury Targets Large Iranian Military Financial Facilitation Networks