OFAC designates 18 entities and individuals tied to illicit banking schemes, oil revenue laundering, and surveillance technology used to repress the Iranian people.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sweeping sanctions against 18 Iranian entities and individuals accused of playing central roles in the regime’s illicit financial operations, sanctions evasion schemes, and human rights abuses.
The measures, announced on August 7, target networks that help Tehran generate revenue through sophisticated “shadow banking” systems, oil sales, and alternative payment channels designed to bypass global financial restrictions. According to OFAC, these operations not only fund Iran’s regional proxies but also underpin the regime’s internal repression, including advanced surveillance to enforce hijab laws and block internet access.
Treasury Secretary Scott Bessent said, “As a result of President Trump’s maximum pressure campaign and increasing isolation from the global financial system, the Iranian regime is running out of places to hide. Treasury will continue to disrupt Iran’s schemes aimed at evading our sanctions, block its access to revenue, and starve its weapons programs of capital in order to protect the American people.”
Targeting Iran’s Alternative Banking Systems
Central to the sanctions is the RUNC Exchange System Company, also known as RUNC International Banking Solutions, which developed Iran’s Cross-Border Interbank Messaging System (CIMS). This alternative to global payment systems enables sanctioned Iranian banks to maintain financial ties abroad, including with China’s Bank of Kunlun.
Three senior RUNC executives—Ali Morteza Birang, Mohammad Shafipour, and Seyyed Mahmoud Reza Sajjadi—were also designated for their roles in managing the company and facilitating sanctions evasion.
Cyrus Offshore Bank: A Sanctions Loophole
OFAC also exposed the creation of Cyrus Offshore Bank in Iran’s Kish Free Zone, a financial entity licensed by the Central Bank of Iran to appear independent while secretly controlled by Parsian Bank.
According to Treasury, Cyrus Bank was used to launder proceeds from illicit oil sales and channel funds to the Islamic Revolutionary Guard Corps (IRGC). Its leadership—Hadi Nouri, Alireza Fatahinojokambari, and Adel Berjisian—has been sanctioned for their direct involvement.
Technology Firms Enabling Surveillance and Repression
The sanctions extend to FANAP, a software and technology company controlled by Pasargad Bank. Originally a banking technology developer, FANAP expanded into government-backed surveillance projects, including Iran’s National Information Network (NIN), which censors internet access, and the Soroush messaging app, used to block access to Telegram.
FANAP also owns Behnama, a facial recognition system operated by Iran’s Morality Police to enforce mandatory hijab laws. FANAP’s director, Shahab Javanmardi, along with multiple subsidiaries, is included in the sanctions list.
Wider Impact of Sanctions
Under these measures, all U.S.-based assets of designated persons are blocked, and U.S. individuals or entities are prohibited from engaging in transactions with them. Foreign financial institutions dealing with these sanctioned entities risk secondary sanctions.
The Treasury emphasized that these actions are part of a broader campaign under Executive Order 13902 and National Security Presidential Memorandum 2, aimed at cutting off Iran’s access to global financial markets, disrupting its ability to fund weapons programs, and countering its repression of the Iranian people.
This coordinated action follows previous OFAC moves against IRGC-linked financial networks and shipping companies generating billions in illicit revenue. It underscores Washington’s intent to close off every avenue Iran uses to evade sanctions and suppress dissent at home.
