US Treasury sanctions Canadian money services firms over Iran-related transactions

The US Treasury said ‌on Friday ​that it had imposed financial sanctions on eight money services firms based in Canada that it alleges have facilitated transactions with sanctioned ‌Iranian entities.

The sanctions effectively cut the firms off from the dollar-based financial system, blocking any assets that the firms may have in the United States and prohibiting any transactions with US persons or entities. The ‌actions are the latest in a series of Treasury moves against firms outside the United ‌States that it says help Iran get around US sanctions, as Washington keeps up pressure on Tehran.

"Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies,” said ⁠Secretary ​of the Treasury Scott Bessent. “Treasury ⁠will pursue and disrupt the Iranian regime’s financial channels anywhere in the world.” The Treasury identified the designated businesses in Ontario ⁠and British Columbia as Diverse Trade Inc doing business as Million Exchange, 1380079 BC Limited, Top PC ​Technician Inc, NIA Nations Currency Ltd, 2397639 Ontario Ltd doing business as Farah Exchange, CCC ⁠Inc and B Galaxy Inc and Darvish Exchange.

Separately, the Treasury said its Financial Crimes Enforcement Network division issued an ⁠order ​that also cuts off virtual currency exchanger MEXC Global from the US financial system over transactions that it says are linked to sanctions evasion by Iran, North Korea and Russia. FinCEN, the ⁠Treasury's anti-money laundering unit, said that the order prevents US financial institutions from processing fund transfers involving ⁠Seychelles-incorporated MEXC Global, which ⁠it says has facilitated at least $16 billion in illicit transactions linked to Iran, North Korea and Russia as well as transactions with other sanctioned ‌actors.