The United States Treasury Department placed sanctions on eight Canadian money services businesses on Tuesday. It accused them of helping the Iranian regime bypass international financial restrictions.
The Office of Foreign Assets Control announced the measures under Operation Economic Outcast. The action used authorities from Executive Order 13902, which targets the digital asset sector of Iran.
According to the Treasury, these firms converted Iranian rials and other currencies into digital assets. Many of the designated entities transacted with sanctioned Iranian exchanges and digital addresses connected to the Islamic Revolutionary Guard Corps.
Treasury Secretary Scott Bessent stated that Canada cannot serve as a sanctuary for unlawful financial actors aiding Tehran and its allies. He added that the department will disrupt these monetary pathways globally.
The designated businesses include Diverse Trade Inc operating as Million Exchange, 1380079 BC Limited trading as Amin Exchange, Top PC Technician Inc, and NIA Nations Currency Ltd.
The list also features 2397639 Ontario Ltd known as Farah Exchange, CCC Inc, B Galaxy Inc operating as Cryptoyal, and Darvish Exchange.
Investigators reported that digital wallets tied to Million Exchange transferred the equivalent of hundreds of thousands of dollars to addresses linked to terrorism or the Revolutionary Guard. Wallets associated with Farah Exchange routed millions in digital assets to destinations connected to Ryan Wedding.
Wedding is a sanctioned Canadian drug trafficker who was apprehended in January. The Treasury stated he used money exchange services across Vancouver and Toronto to launder billions in narcotics proceeds. Amin Exchange converted cash into digital assets for Wedding to move abroad.
The US State Department issued a separate statement saying the eight digital asset providers helped Tehran evade restrictions and finance terrorism. The department said some of the firms altered names and locations to evade detection.
The Treasury stated that these money services businesses continued operating despite media investigations exposing risks related to sanctions evasion and terrorist financing.
The designations were carried out in coordination with the Financial Crimes Enforcement Network, Canada’s financial intelligence unit FINTRAC, and the Drug Enforcement Administration.
