US Treasury Sanctions Eight Canadian Currency Exchange Firms Over Iran Links

The US Department of the Treasury announced on Friday, 7 November, that it had imposed sanctions on eight Canadian currency-exchange businesses accused of helping sanctioned Iranian entities get around financial restrictions. The move is part of a US campaign called "Operation Economic Outcast", through which Washington is increasing economic pressure on the Iranian government.

According to the Treasury, the firms are based in the Canadian provinces of Ontario and British Columbia. They include Million Exchange, Amin Exchange and Cryptoyal. Some are alleged to have laundered proceeds by converting Iranian rials and other currencies into digital assets such as cryptocurrency, and some are said to have assisted a person described as the head of a drug trafficking ring.

The sanctions effectively cut the firms off from the US dollar-based financial system, freeze any assets they hold in the US and bar transactions with American individuals or entities. US Treasury Secretary Scott Bessent said in a statement that Canada cannot be a safe haven for illicit financial facilitators offering sanctions-evasion services to the Iranian regime and its proxies.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) said it worked with the US Financial Crimes Enforcement Network (FinCEN), the Treasury's anti-money laundering unit, to impose the measures.

Other steps against Iran

Separately, FinCEN issued an order targeting MEXC Global, a money exchanger incorporated in the Seychelles. The order bars US financial institutions from processing fund transfers involving the platform, which FinCEN says has facilitated at least $16bn in illicit transactions linked to Iran, North Korea and Russia.

On Wednesday, the Treasury also sanctioned a network in India and Turkiye that it accuses of helping Iran evade restrictions on its oil exports and airlines. The US claimed last week that the campaign had pushed Iran's rial to new lows and driven inflation to about 90 percent.