The US Treasury Department imposed financial sanctions on eight Canadian money-service businesses, alleging they facilitated digital asset transactions for sanctioned Iranian entities. The designations, announced Friday, target firms accused of exchanging Iranian rials and other currencies for cryptocurrencies to enable international transfers.
According to a Treasury statement, these companies processed transactions involving sanctioned Iranian digital asset exchanges and addresses linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). The department stated that some of the targeted entities altered their names and addresses in attempts to evade detection.
Coordination with Canadian authorities
Treasury Secretary Scott Bessent said Canada must not serve as a safe haven for illicit financial facilitators providing sanctions evasion services to the Iranian regime. The Treasury noted that the enforcement action was coordinated with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the country’s financial intelligence unit.
The department described the move as part of an ongoing campaign to disrupt Iran’s use of digital assets to fund terrorism, human rights abuses, and attacks on US personnel and allies. Cointelegraph reported in August that the Treasury’s Office of Foreign Assets Control was already targeting crypto exchanges involved in transferring funds to the IRGC.
Broader pressure on Iran
In a separate development Friday, the US Rewards for Justice program offered up to $20 million and possible relocation for information regarding Iran’s nuclear program, including details on facilities, equipment, and personnel. The Treasury statement cited Iran’s lack of compliance with the International Atomic Energy Agency, noting it has led to a loss of continuity of knowledge regarding Tehran’s enriched uranium production and centrifuge components.
