The US Treasury has imposed sanctions on eight Canadian money-exchange businesses accused of helping Iranian entities evade financial restrictions and handling funds linked to an alleged drug-trafficking boss.
The measures, announced on Friday under what the department calls “Operation Economic Outcast”, target firms based in Ontario and British Columbia. The Treasury said some had converted Iranian rials and other currencies into digital assets, including cryptocurrency, to launder proceeds.
Scott Bessent, the US Treasury Secretary, said: “Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies.”
The sanctioned businesses include Million Exchange, operated by Diverse Trade Inc in Ontario, and Amin Exchange, operated by 1380079 BC Limited in British Columbia. The list also names Top PC Technician Inc, NIA Nations Currency Ltd and Farah Exchange, operated by 2397639 Ontario Ltd.
CCC Inc, B Galaxy Inc – which trades as Cryptoyal – and Darvish Exchange, all in Ontario, were also designated. CCC Inc and Cryptoyal are listed as operating from the same Ontario location.
The sanctions freeze any assets the businesses hold in the United States and prevent them from carrying out transactions with American people or entities. They also effectively cut the firms off from the US dollar-based financial system.
Canadian agency worked with US authorities
Canada’s Financial Transactions and Reports Analysis Centre, known as FINTRAC, said it had worked with the US Financial Crimes Enforcement Network, or FinCEN, in imposing the measures against the money-service businesses.
“FINTRAC works regularly with foreign financial intelligence units to combat money laundering, terrorist financing and sanctions evasion,” the agency said. “Through bilateral agreements, the Centre is able to disclose intelligence to financial intelligence units worldwide.”
In a separate action, FinCEN issued an order targeting MEXC Global, a money exchanger incorporated in Seychelles. The order bars US financial institutions from processing fund transfers involving the company.
FinCEN alleges that MEXC Global facilitated at least 16 billion US dollars in illicit transactions linked to Iran, North Korea and Russia, as well as dealings with other sanctioned actors.
US increases pressure on Iran
The Treasury said its sanctions campaign was intended to “sever the economic lifelines that sustain the Iranian regime” and the Islamic Revolutionary Guard Corps, which Canada also lists as a terrorist organisation.
Earlier this week, the US sanctioned a network in India and Türkiye accused of helping Iran evade restrictions on oil exports and airlines. The Treasury said the network was run by Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, who are based in Chandigarh in northern India.
The US said last week that the campaign had pushed Iran’s rial to new lows and driven inflation to about 90 per cent.
