Treasury Warns Financial Institutions of Iranian Attempts to Evade Sanctions

Washington D.C. - The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued an advisory warning financial institutions and virtual currency providers of Iran’s attempts to evade sanctions using deceptive practices.

Iranian Shipping Companies’ Deceptive Practices

• Iranian shipping companies may resume using evasive tactics such as:
  • Falsifying documents
  • Hiding their involvement in trade-related payments
• Financial institutions are advised to be vigilant for signs of these activities, including:
  • Changes in trade-related documents
  • Bills of lading
  • Shipping invoices

Iran’s Use of Precious Metals and Virtual Currencies

• Iran is using precious metals such as gold to evade sanctions
• Virtual currency platforms may also be used to circumvent restrictions
• Iranian individuals and businesses can access virtual currencies through:
  • Internet-based exchanges
  • Peer-to-peer exchangers
  • Other means

Advisory Urges Thorough Due Diligence

• Financial institutions are urged to conduct thorough due diligence to ensure they are not providing services to sanctioned parties
• Report any suspicious activity to the Financial Crimes Enforcement Network (FinCEN)
• “The Iranian regime’s attempts to evade sanctions will not be tolerated,” said a Treasury spokesperson. “We urge all financial institutions and virtual currency providers to remain vigilant and take necessary steps to prevent Iran from using these tactics to undermine U.S. sanctions.”

Regulatory Obligations

• Financial institutions are reminded of their obligations under:
  • The Bank Secrecy Act (BSA)
  • Anti-money laundering/countering the financing of terrorism (AML/CFT) regulations
  • The need to screen against OFAC’s Specially Designated Nationals (SDN) List

Additional Resources

• For more information on OFAC sanctions, financial institutions can:
  • Contact OFAC’s Toll-Free Hotline
  • Email the Feedback Account