US Treasury sanctions eight Canadian money exchange firms over Iran ties
US Treasury claims firms helped sanctioned Iranian entities and handled funds linked to alleged drug trafficking boss.
Key points
- The US Treasury sanctioned eight Canadian currency-exchange firms accused of helping Iran evade financial sanctions.
- The firms are based in Ontario and British Columbia, and include Million Exchange, Amin Exchange and Cryptoyal.
- FINTRAC said it worked with the US FinCEN to impose the sanctions on the money service businesses.
The United States has sanctioned eight Canadian currency-exchange businesses accused of helping Iranian entities get around financial sanctions. The US Department of the Treasury announced the measures on Friday as part of what it calls "Operation Economic Outcast".
The Treasury said some of the businesses also laundered proceeds by converting Iranian rials and other currencies into digital assets such as cryptocurrency. It added that some helped an alleged head of a drug trafficking ring. The firms are based in Ontario and British Columbia, and include Million Exchange, Amin Exchange and Cryptoyal.
What the sanctions do
The sanctions cut the firms off from the US dollar-based financial system. Any assets they hold in the US are frozen, and they are barred from transactions with American people or entities.
US Treasury Secretary Scott Bessent said in a statement that "Canada cannot be a safe haven for illicit financial facilitators". He said such facilitators provide sanctions evasion services to the Iranian regime and its proxies.
Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies
— US Treasury Secretary Scott Bessent
Canadian and related actions
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said shortly after the announcement that it worked with the US Financial Crimes Enforcement Network (FinCEN) to impose the sanctions. FINTRAC said it works regularly with foreign financial intelligence units to combat money laundering, terrorist financing and sanctions evasion.
In a separate statement on Friday, the Treasury said FinCEN issued an order targeting the money exchanger MEXC Global. FinCEN said the order stops US financial institutions from processing fund transfers involving Seychelles-incorporated MEXC Global, which it says facilitated at least $16bn in illicit transactions linked to Iran, North Korea and Russia.
