July 30, 2024
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against five individuals and seven entities based in Iran, China, and Hong Kong. These targets are accused of facilitating procurements for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) subordinates.
The designated parties have been involved in procuring critical components, including accelerometers and gyroscopes, which are essential for Iran’s ballistic missile and unmanned aerial vehicle (UAV) programs. This action aims to curb Iran’s ability to proliferate weapons systems to its proxies in the Middle East and to Russia.
“Iran’s reckless proliferation of its ballistic missiles and UAVs risks further instability and endangers civilian lives, both in the region and around the world. Today’s action exposes additional key front companies and trusted agents through which Iran has sought to acquire these components,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.
Key Points of the Action:
- The action was taken under Executive Order 13382, which targets proliferators of weapons of mass destruction and their delivery systems.
- OFAC is targeting the Beijing SNTD procurement network, which includes PRC-based Beijing Shiny Nights Technology Development Co., Ltd. and associated individuals.
- The SAPA procurement network, including Iran-based Electro Optic Sairan Industries Co and related individuals and companies in Hong Kong and China, is also targeted.
- Iran-based Azmoon Pajohan Hesgar Limited Liability Company (APH) and its managing director are designated for their involvement in procuring missile-applicable items.
- PRC-based Shenzhen Rion Technology Co., Ltd. is sanctioned for providing support to MODAFL front companies.
Implications of the Sanctions
As a result of this action, all property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. The sanctions also prohibit transactions by U.S. persons or within the United States involving the property or interests of designated or blocked persons.
Financial institutions and other entities engaging in transactions with the sanctioned individuals and entities may face sanctions or enforcement actions. These prohibitions extend to the making or receiving of any contributions or provisions of funds, goods, or services to or from any designated person.
This latest round of sanctions underscores the U.S. government’s commitment to countering Iran’s missile and UAV programs and their potential impact on regional and global stability.
