US sanctions 18 Iranian entities for trying to dodge financial restrictions

The United States announced fresh sanctions against 18 companies and individuals for helping Iran bypass restrictions and raise funds, the Treasury Department said on Thursday.

The sanctions are part of Washington’s push to stop Iran from funding its weapons programmes and to pressure the country economically.

In its official statement, the US Treasury said the targeted network helped Iran move money around secretly and avoid existing sanctions. These measures aim to block Iran from earning revenue and to cut its access to the international financial system.

"Treasury will continue to disrupt Iran’s schemes aimed at evading our sanctions," said Treasury Secretary Scott Bessent. "We’re committed to starving Iran’s weapons programmes of funds to keep Americans safe."

IRAN’S BANKING TOOLS UNDER FIRE

Among the targets is RUNC Exchange System Company, which built a messaging system known as CIMS (Cross-Border Interbank Messaging System). The tool was designed to replace global systems like SWIFT, allowing Iran to continue financial transactions despite sanctions.

According to the statement, the system has been used for cooperation with China’s Bank of Kunlun, which is also under US sanctions. The Treasury warned that any financial institutions using CIMS could be exposed to penalties.

Three senior members of RUNC, including the managing director and board chair, were also sanctioned.

HIDDEN OFFSHORE BANKING NETWORK

The US also sanctioned Cyrus Offshore Bank, which operates in Iran’s Kish Free Zone. Officials say it was secretly created to handle money from oil sales and mask ties to Iran’s central bank.

The bank worked closely with Parsian Bank and the Iranian military, helping move funds through Chinese banks. A few top executives at Cyrus Bank were also named in the sanctions.

FANAP, a tech firm owned by Pasargad Bank, which has already been sanctioned, is another target. FANAP provides Iranian banks with tech services and software, like digital payment systems and ATM services.

FANAP’s has reportedly worked with Iran’s intelligence ministry and police to create surveillance tools like facial recognition systems and domestic messaging apps that restrict access to the global internet. Its director and multiple subsidiaries have been sanctioned.

WHAT THE SANCTIONS MEAN

All of the involved individuals' and organisations' US-based assets are currently frozen. They are prohibited from doing business with US citizens, and any foreign financial institutions that assist them risk secondary sanctions that could limit their capacity to conduct business in the US.

The US says the goal is not just punishment, but to pressure Iran into changing its behaviour.

- Ends

With inputs from Reuters