OFAC Sanctions Network of Iranian Procurement Companies

The Treasury’s Office of Foreign Assets Control sanctioned five entities and five people for their involvement in procurement networks for Iran’s military, Treasury said in an Aug. 28 press release. The sanctions target two major networks led by Iranian nationals Hamed Dehghan and Seyed Hossein Shariat.

Dehghan worked with Hadi Dehghan, also an Iran national, to complete more than $10 million worth of “proliferated-related transactions” for Iran’s Islamic Revolutionary Guard Corps, Treasury said. They used a “network of intermediary companies,” including Green Industries Hong Kong Limited, a Hong Kong-based front company, to complete the transactions, the press release said. Hamed and Hadi also used Pishtazan Kavosh Gostar Boshra (PKGB) and Ebtekar Sanat Ilya to procure more than $1 million dollars worth of “military-grade electronic components” for Iranian clients involved with the country’s military. Shaghayegh Akhaei, also sanctioned, worked as PKGB’s general manager.

Ebtekar Sanat Ilya’s customers include Iran’s Aircraft Manufacturing Industrial Company (HESA), Shahid Bakeri Industrial Group (SBIG) and Shahid Hemmat Industrial Group (SHIG), all of which were previously sanctioned by the U.S., Treasury said. The European Union and the United Nations have also sanctioned SBIG and SHIG, the press release said.

Hamed used Green Industries to buy export-controlled “military end-use equipment” from U.S. companies, Treasury said. The items were intended for sanctioned Iranian entities. Shafagh Senobar Yazd, also sanctioned, served as a “consignee” in Iran for the procurement network.

OFAC also sanctioned Asre Sanat Eshragh Company and its owner, Shariat, for procuring “large amounts of aluminum alloy products” for Iranian entities since at least 2016, Treasury said. The company sold to Iran Electronic Industries and the Iran Aviation Industries Organization.