The Treasury announced sanctions on Tuesday, claiming that the US Department of the Treasury's Office of Foreign Assets Control (OFAC) designated nearly 50 entities and individuals as part of a “sprawling shadow banking network”. This network has been supported by the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL) and the Islamic Revolution Guards Corps (IRGC) for illegal access to the international financial system and transactions of billions of dollars since 2020.

It was claimed that MODAFL and IRGC are involved in revenue-generating commercial activities, particularly through the sale of Iranian oil and petrochemicals.

Wally Adeyemo, the Deputy Secretary of the US Treasury, claimed that the US has taken action against an extensive clandestine banking system used by the Iranian military to launder billions of dollars in oil revenues and other illicit revenues.