Recent news from Treasury’s Office of Foreign Assets Control: October 14

Iran-related Sanctions

Treasury sanctions Iran-linked networks supporting Iraq’s economy: OFAC on Oct. 9 sanctioned a network of individuals and entities aiding the Iranian regime in evading U.S. sanctions, smuggling weapons, and corrupting Iraq’s financial and security sectors.

Among the designees are:

• Iraqi bankers accused of laundering millions for Iran and embedding militia financing into Iraq’s financial system.
• Front companies, including Muhandis General Company and Baladna Agricultural Investments
• IRGC-linked intelligence operatives gathering sensitive information on Iraqi and U.S. personnel.

These actions target Iran’s use of proxy militia groups to infiltrate Iraq’s institutions and threaten regional stability. The designations were made under Executive Order 13224, as amended. Read more.

Treasury sanctions over 50 actors supporting Iran’s energy exports: OFAC on Oct. 9 sanctioned more than 50 individuals, entities, and vessels for facilitating the export of billions of dollars’ worth of Iranian petroleum and liquefied petroleum gas (LPG).

The designated actors span Asia, the Middle East, and maritime networks, including:*******

• Shipping companies and vessels transporting Iranian oil to China, Pakistan, and Bangladesh.
• Petrochemical traders importing Iranian-origin products into India.
• China-based refineries and terminals processing Iranian crude oil.
• UAE and Hong Kong firms enabling payments and logistics for Iran’s energy sector.*******

The action was taken under Executive Orders 13902 and 13846. Read more.

Foreign Terrorist Organization Sanctions

Treasury sanctions Mexican network supplying fentanyl precursors to Sinaloa Cartel: OFAC on Oct. 6 sanctioned eight Mexican individuals and 12 Mexico-based companies affiliated with the Los Chapitos faction of the Sinaloa Cartel, a designated terrorist organization.

Among the designees include:

• Members of the Favela López family, who operate Sumilab, a chemical and lab equipment firm previously sanctioned in 2023.
• Martha Emilia Conde Uraga, a long-time chemical broker using fraudulent invoicing and concealment tactics to support cartel operations.
• The sanctioned companies span chemical, agricultural, cleaning, and real estate sectors, and are accused of laundering money and facilitating logistics for fentanyl production. Read more.

Corruption and Human Rights Abuse Designations

OFAC removes multiple entries from SDN List: OFAC on Oct. 6 removed eight individuals and six entities from the Specially Designated Nationals (SDN) List under the Global Magnitsky sanctions program (GLOMAG).

Removals include:

• Horacio Manuel Cartes Jara, former President of Paraguay, and three aliases.
• TABESA (Tabacalera del Este S.A.), a major Paraguayan tobacco company.
• TABACOS USA INC. and BEBIDAS USA INC., U.S.-registered firms.
• Dominicana Acquisition S.A. and Frigorifico Chajha S.A.E., Paraguay-based companies. Read more.