By Al-Fassel | 2025-09-24

The Iranian Regime's Global Threat

For decades, Iran has fueled chaos in the region through proxy warfare and terrorist sponsorship. Groups like Hezbollah, Hamas, and the Houthis receive financial and logistical support from the Iranian regime, undermining peace efforts and threatening global security.

A recent investigation by the Treasury’s Office of Foreign Assets Control (OFAC) uncovered a network of entities based in Hong Kong and the UAE.

Said entities are enabling illicit fund transfers, including proceeds from Iranian oil sales. These transfers support the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The funds are used to finance regional terrorist proxies and develop advanced weapon systems, including ballistic missiles and unmanned aerial vehicles (UAVs).

This month, the Daily Express reported that IRGC operatives actively used online targeting techniques to recruit men for sleeper cells in Britain.

Shadow Banking Networks Exploiting International Systems

Iran’s reliance on shadow banking networks to evade sanctions has become a growing concern. These networks exploit the global financial system to launder money and fund malign activities.

“Iranian entities are moving millions through shadow banking networks to circumvent sanctions,” said John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

He added “under President Trump’s leadership, we remain committed to disrupting these financial streams that fund Iran’s weapons programs and destabilizing activities.”

This latest action, taken under Executive Order 13224, builds on previous sanctions targeting similar networks. In recent months, OFAC has exposed groups laundering billions through exchange houses and front companies tied to the IRGC-QF.

Key Figures and Front Companies

Two Iranian nationals, Alireza Derakhshan and Arash Estaki Alivand, are central to the network. They facilitated over $100 million in cryptocurrency purchases linked to Iranian oil sales. These transactions were conducted through front companies operating across multiple jurisdictions.

Alivand coordinated payments between Iranian entities and Syria-based Al-Qatirji Company, a key partner of the IRGC-QF in oil sales. He also worked with Tawfiq Muhammad Sa’id al-Law, a Hizballah-associated money changer, to facilitate cryptocurrency transfers for terrorist groups.

Derakhshan’s operations extend to front companies in the UAE and Hong Kong, including Alpa Trading FZ CO, Alpa Investment L.L.C., and Alpa Hong Kong Limited. These entities manage hundreds of millions of dollars in transactions, supporting MODAFL and the IRGC.

Other companies linked to Derakhshan include Powell Raw Materials Trading L.L.C. and Minato Commercial Brokers. These firms launder funds and facilitate Iran’s illicit activities.

Combating Regional Security Challenges

The Treasury’s actions highlight the ongoing threat posed by Iran’s shadow banking networks. By exploiting international financial systems and cryptocurrencies, these networks fund terrorism and weapons programs that destabilize the region.

Sanctions remain a critical tool in curbing Iran’s ability to finance malign activities. By targeting sectors like oil exports, banking, and trade, the U.S. limits Iran’s access to revenue streams that fund its destructive ambitions and terrorist proxies.

The U.S. government is committed to dismantling these operations and promoting reginal and global security.