US Treasury adds eight Canada-based money services firms to Iran sanctions list

In brief

• The US Treasury added eight Canada-based financial services firms to its Iran sanctions list on Friday, November 6.
• The move followed a Treasury warning earlier in the week about helping Tehran evade sanctions.
• The designations are part of a wider set of US economic measures against Iran in place since the February conflict.
• Washington and Tehran have not reached agreement on Iran's nuclear programme despite a ceasefire and later talks.

Eight Canadian firms added to the list

The US Treasury Department has placed eight companies headquartered in Canada on its Iran-related sanctions list. All eight are described as money services businesses, meaning they handle transfers and other financial transactions. The move was announced on Friday, November 6 (US Treasury sanctions Canadian money services firms over Iran-related transactions – Investing.com) (USA rozšířily protiíránský sankční seznam. Dříve varovaly před pomáháním Teheránu – iROZHLAS) (USA rozšířily protiíránský sankční seznam – Seznam Zprávy).

Warning issued earlier in the week

The designations follow a warning the Treasury issued earlier this week about attempts to help Tehran get around existing sanctions. The department did not name the firms in that warning, and the new listings are the concrete step that followed.

Background to the dispute

Washington and Tehran remain at odds over Iran's nuclear programme, which Iran says is purely peaceful. In February the United States and Israel carried out strikes on Iran, saying the aim was to stop it from developing atomic weapons. A ceasefire was agreed in April and a memorandum of understanding was signed in June. Talks held on the sidelines of the UN General Assembly in September did not produce an agreement.

Scope of US measures since February

Since the conflict began in late February, Washington has imposed a range of economic measures on Iran. They target oil exports, shipping networks, arms procurement channels, financial intermediaries, digital asset exchanges and air links.

What the listing means for businesses

An entry on the Specially Designated Nationals list generally blocks any property of the named firms that falls under US jurisdiction and bars Americans from dealing with them. Non-US companies that continue doing business with listed entities can also face exposure to US penalties. The Treasury's notice did not set out a timetable for further designations.