US targets Canadian money firms in crackdown on Iran sanctions evasion
The US Treasury sanctions eight Canadian money services businesses accused of helping Iran evade financial restrictions, while separately restricting cryptocurrency exchange MEXC Global.
The United States has imposed financial sanctions on eight Canadian money services businesses accused of facilitating transactions involving sanctioned Iranian entities, in the latest move by Washington to disrupt Tehran's international financial networks.
The US Treasury Department announced the measures on Friday (November 6), saying the companies, based in Ontario and British Columbia, had helped Iranian entities move money across borders and evade US sanctions.
The sanctions block any assets the designated businesses hold in the United States and prohibit US individuals and companies from conducting transactions with them, effectively cutting them off from the US dollar-based financial system.
"Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies," US Treasury Secretary Scott Bessent said.
"Treasury will pursue and disrupt the Iranian regime's financial channels anywhere in the world," he added.
Eight Canadian businesses designated
The Treasury identified the following companies as subject to the sanctions:
- Diverse Trade Inc, operating as Million Exchange
- 1380079 BC Limited
- Top PC Technician Inc
- NIA Nations Currency Ltd
- 2397639 Ontario Ltd, operating as Farah Exchange
- CCC Inc
- B Galaxy Inc
- Darvish Exchange
According to the Treasury, the businesses provided currency exchange and digital asset services that enabled transactions involving Iranian entities and other sanctioned parties.
Several allegedly facilitated the conversion of Iranian rials and other currencies into digital assets for international transfers. Some were also linked to transactions involving digital asset addresses associated with Iran's Islamic Revolutionary Guard Corps (IRGC) and sanctioned Iranian cryptocurrency exchanges.
The measures form part of Washington's continuing efforts to restrict Iran's access to international financial channels and prevent the use of digital assets to circumvent economic restrictions.
MEXC Global separately cut off from US financial system
In a separate action announced on Friday, the Treasury's Financial Crimes Enforcement Network (FinCEN) issued an order restricting US financial institutions from processing fund transfers involving cryptocurrency exchange MEXC Global.
The Seychelles-incorporated company was accused by FinCEN of facilitating at least US$16 billion in illicit transactions connected to Iran, North Korea, Russia and other sanctioned individuals and entities.
The order effectively cuts MEXC Global off from the US financial system by preventing American financial institutions from processing transfers involving the exchange.
The two actions highlight Washington's growing focus on money services businesses and digital asset platforms that it says are being used to move funds across borders and bypass financial restrictions.
Source: Reuters
