US Sanctions 8 Canadian Financial Firms Over Alleged Links to Iranian Sanctions Evasion

By Staff, Agencies

The US Treasury Department announced sanctions on Friday against eight Canada-based money services businesses accused of helping Iran evade international sanctions and facilitating the movement of funds into and out of the country.

The measures were imposed by the Treasury’s Office of Foreign Assets Control [OFAC] under Executive Order 13902 as part of an initiative known as Operation Economic Outcast, targeting financial activities linked to Iran’s digital asset sector.

According to the Treasury Department, the companies allegedly exchanged Iranian rials and other currencies for digital assets and conducted transactions with sanctioned Iranian cryptocurrency exchanges and digital wallet addresses linked to Iran’s Islamic Revolutionary Guard Corps [IRGC].

The eight designated businesses are Diverse Trade Inc., operating as Million Exchange; 1380079 BC Limited, operating as Amin Exchange; Top PC Technician Inc.; NIA Nations Currency Ltd.; 2397639 Ontario Ltd., operating as Farah Exchange; CCC Inc.; B Galaxy Inc., operating as Cryptoyal; and Darvish Exchange.

US Treasury Secretary Scott Bessent said Canada should not become a safe haven for businesses accused of helping Iran bypass sanctions. He added that Washington would continue targeting the Iranian government’s financial networks wherever they operate.

The Treasury also alleged that digital wallet addresses associated with Million Exchange transferred hundreds of thousands of dollars to accounts linked to the IRGC or terrorism-related activities. Meanwhile, addresses connected to Farah Exchange allegedly sent millions of dollars in digital assets to wallets associated with Ryan Wedding, a Canadian drug trafficker sanctioned by the United States and apprehended in January.

According to US authorities, Wedding allegedly used currency exchange businesses in Vancouver and Toronto to launder billions of dollars in drug proceeds. Amin Exchange was accused of helping him convert cash into digital assets before transferring the funds abroad.

The latest sanctions follow earlier US actions against several Iranian cryptocurrency platforms, including Nobitex, Wallex, Bitpin and Ramzinex on June 2, as well as Aban Tether Exchange and SHPS Shelbit on August 7.

The operation was coordinated with the US Financial Crimes Enforcement Network [FinCEN], Canada’s Financial Transactions and Reports Analysis Centre [FINTRAC], and the Drug Enforcement Administration [DEA].

In a separate statement, the US State Department said the targeted companies had allegedly helped the Iranian government evade sanctions and finance terrorism. It also accused some of the businesses of changing their names and addresses to avoid detection.

The Treasury Department further claimed that the companies continued operating despite media reports raising concerns about their alleged involvement in sanctions evasion and terrorist financing.