Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on five entities and one individual in Iran, Hong Kong, Taiwan, and China for supplying technology to the Iran Aircraft Manufacturing Industrial Company (HESA), a state-owned subsidiary of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).
HESA produces military aircraft and Ababil-series drones used by Iran’s Islamic Revolutionary Guard Corps (IRGC). HESA is sanctioned by the U.S., UK, and EU, was previously sanctioned by the UN, and remains blocked under multiple U.S. legal authorities (primarily E.O. 13382) for proliferation and defense-related activities.
The designations, issued under Executive Order 13382, target proliferators of weapons of mass destruction and their means of delivery.
Treasury said the network procured computer numerical control (CNC) machines—critical in aerospace and defense manufacturing—for HESA, using intermediaries to conceal involvement.
According to OFAC, Iran-based Control Afzar Tabriz Co. Ltd., led by CEO Javad Alizadeh Hoshyar, obtained CNC machines through Hong Kong-based Clifton Trading Limited, Taiwan-based Mecatron Machinery Co. Ltd., and Joemars Machinery and Electric Industrial Co. Ltd. Joemars also established a Chinese subsidiary, Changzhou Joemars Industrial Automation Co. Ltd., to facilitate transactions.
Taiwan's Ministry of Economic Affairs has reportedly said it would urge local companies to comply with international export control laws and step up legal compliance. It also plans to invite experts to provide training on U.S. export regulations to help Taiwanese machinery firms avoid sanctions.
Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley stated that Iran’s pursuit of drone technology supports attacks against the United States and its allies. “We will continue to disrupt Tehran’s ability to further its destabilizing agenda,” Hurley said.
The sanctions freeze any U.S. assets of the targeted parties and generally prohibit U.S. persons from engaging in transactions with them. Non-U.S. persons that conduct certain transactions with the designated entities also risk sanctions exposure.
This action follows prior designations of HESA, MODAFL, and the IRGC under E.O. 13382 for their roles in Iran’s weapons programs.
Treasury Announcement [Link]
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