US Treasury targets eight Canadian money changers for Iran sanctions violations

The US Treasury Department announced sanctions against eight Canadian money exchange companies on allegations they violated Iran-related sanctions regimes and processed financial flows connected to international narcotics operations. The action targets firms accused of enabling transactions for sanctioned Iranian entities and individuals, circumventing restrictions imposed by Washington and its allies.

According to Treasury officials, the targeted money changers provided financial services that helped sanctioned Iranian actors access the global financial system despite existing prohibitions. The sanctions also cite the firms' involvement in handling funds allegedly linked to an international drug trafficking organization, though specific details remain limited.

The enforcement action underscores US efforts to combat sanctions evasion through informal money transfer networks, which have become critical pathways for restricted entities seeking to conduct international commerce. Canadian financial institutions have faced increased scrutiny from American regulators over potential Iran-related compliance failures.

The designations freeze any US-based assets held by the eight firms and generally prohibit American persons and entities from conducting business with them. The move follows a broader Treasury campaign targeting money exchange services across multiple jurisdictions accused of facilitating sanctions violations and money laundering.