Treasury Sanctions International Community Supporting Iran’s Army UAV Program

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating 5 entities and one particular person primarily based in Iran, Hong Kong, Taiwan, and China for his or her procurement of know-how in help of OFAC-designated Iran Aircraft Manufacturing Industrial Company (HESA).  HESA is a state-owned subsidiary of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL) that manufactures Iran’s navy plane and Ababil‑sequence unmanned aerial autos (UAVs), which have been employed by the Islamic Revolutionary Guard Corps (IRGC).  Today’s motion is being taken in furtherance of National Security Presidential Memorandum 2, which directs that Iran be denied uneven and standard weapons capabilities, and that the IRGC and its surrogates be disrupted and degraded.

“Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the United States, our servicemembers and our partners and allies in the region,” stated Under Secretary of the Treasury for Terrorism and Financial Intelligence John Ok. Hurley.  “We will continue to put America first by disrupting Tehran’s ability to further its destabilizing agenda that undermines the stability of the region and threatens the safety of the American people.”

Today’s motion was taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their technique of supply.  On September 17, 2008, Treasury designated HESA pursuant to E.O. 13382 for being owned or managed by MODAFL and for offering help to the IRGC.  On October 25, 2007, the U.S. Department of State designated MODAFL and the IRGC pursuant to E.O. 13382 for having engaged, or tried to interact, in actions or transactions which have materially contributed to, or pose a threat of materially contributing to, the proliferation of weapons of mass destruction or their technique of supply.  

TARGETING IRANIAN AIRCRAFT AND UAV TECHNOLOGy procurement

Under Javad Alizadeh Hoshyar’s (Alizadeh) route and administration as Chief Executive Officer (CEO), Iran-based Control Afzar Tabriz Co Ltd (Control Afzar) procured pc numerical management (CNC) machines and gear for HESA.  CNC machines are utilized in excessive‑finish aerospace and protection manufacturing to create exact and sturdy elements for business and navy plane.  Control Afzar used Hong Kong-based Clifton Trading Limited (Clifton Trading) as a substitute consignee and middleman for procurements within the curiosity of HESA, with the intention of obscuring the involvement of Control Afzar.  Control Afzar additionally used Taiwan-based Mecatron Machinery Co Ltd (Mecatron) and Joemars Machinery and Electric Industrial Co Ltd (Joemars Machinery) to ship CNC machines and gear to Iran and knowingly circumvent sanctions and export controls.  Joemars Machinery established China‑primarily based Changzhou Joemars Industrial Automation Co Ltd (Changzhou Joemars) as a subsidiary.

Control Afzar is being designated pursuant to E.O. 13382 for having supplied, or tried to offer, monetary, materials, technological or different help for, or items or companies in help of, HESA. 

Alizadeh is being designated pursuant to E.O. 13382 for being owned or managed by, or appearing or purporting to behave for or on behalf of, straight or not directly, Control Afzar. 

Clifton Trading, Mecatron, and Joemars Machinery are being designated pursuant to E.O. 13382 for having supplied, or tried to offer, monetary, materials, technological or different help for, or items or companies in help of, Control Afzar. 

Changzhou Joemars is being designated pursuant to E.O. 13382 for being owned or managed by, or appearing or purporting to behave for or on behalf of, straight or not directly, Joemars Machinery.

SANCTIONS IMPLICATIONS

As a results of as we speak’s motion, all property and pursuits in property of the designated or blocked individuals described above which might be within the United States or within the possession or management of U.S. individuals are blocked and have to be reported to OFAC.  In addition, any entities which might be owned, straight or not directly, individually or within the mixture, 50 p.c or extra by a number of blocked individuals are additionally blocked.  Unless licensed by a normal or particular license issued by OFAC, or exempt, OFAC’s laws usually prohibit all transactions by U.S. individuals or inside (or transiting) the United States that contain any property or pursuits in property of blocked individuals. 

Violations of U.S. sanctions could outcome within the imposition of civil or legal penalties on U.S. and international individuals.  OFAC could impose civil penalties for sanctions violations on a strict legal responsibility foundation.  OFAC’s Economic Sanctions Enforcement Guidelines present extra data relating to OFAC’s enforcement of U.S. financial sanctions.  In addition, monetary establishments and different individuals could threat publicity to sanctions for participating in sure transactions or actions with designated or in any other case blocked individuals.

Furthermore, participating in sure transactions involving the individuals designated as we speak could threat the imposition of secondary sanctions on collaborating international monetary establishments.  OFAC can prohibit or impose strict situations on opening or sustaining, within the United States, a correspondent account or a payable-through account of a international monetary establishment that knowingly conducts or facilitates any important transaction on behalf of an individual who’s designated pursuant to the related authority.

The energy and integrity of OFAC sanctions derive not solely from OFAC’s means to designate and add individuals to the Specially Designated Nationals and Blocked Persons List (SDN List), but additionally from its willingness to take away individuals from the SDN List in step with the regulation.  The final purpose of sanctions is to not punish, however to deliver a couple of optimistic change in habits.  For data regarding the course of for searching for elimination from an OFAC checklist, together with the SDN List, or to submit a request, please check with OFAC’s steering on Filing a Petition for Removal from an OFAC List.

Click here for more information on the persons designated today.

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