The US announced new sanctions targeting Iran’s industrial infrastructure and the A7 Network, which is associated with sanctions-evasion activities. The US Treasury Department sanctioned Iran Khodro and SAIPA, their subsidiaries, and the Islamic Republic of Iran Railways.
The action added various entities, including railway and automotive holding companies, to the list alongside Iran Khodro and SAIPA, described as among Iran’s largest automotive manufacturers. US authorities said the companies and institutions were linked to Iran’s Islamic Revolutionary Guard Corps and had been used to circumvent sanctions.
A7 Network added to sanctions list
The US Treasury Department said the A7 Network was established and supported to evade sanctions. According to the department, the network disguised payments linked to sanctioned sectors and individuals as ordinary commercial transactions.
The Office of Foreign Assets Control (OFAC) designated A7 as a transnational criminal organization and added it to the sanctions list.
FinCEN proposes rule on fund transfers
The Financial Crimes Enforcement Network (FinCEN) proposed a rule that would prohibit fund transfers for transactions involving A7’s sub-agents. The agency also issued an alert to help financial institutions identify and report suspicious activities linked to A7.
Bessent: Financial infrastructure targeted
US Treasury Secretary Scott Bessent said the measures aimed to protect the integrity of the global financial system. Bessent said the financial infrastructure that enables Iran and other adversaries to evade sanctions and conduct illicit fund transfers had been targeted.
Bessent said the action against A7 was part of efforts to isolate Iran and its financial facilitators. He warned that those who facilitate illicit financing would lose access to the US financial system.
The Treasury also designated Iran’s automotive and rail sectors for sectoral sanctions, opening the way to sanction individuals and entities operating in them, added two more rail companies to the list, and designated the Russia-linked A7 Network as a significant transnational criminal organization.
