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 Treasury Adds Two Entities to the List of Iranian Weapons Proliferators


7/18/2006

HP-17

The Department of the Treasury today designated two additional Iranian companies, Sanam Industrial Group and Ya Mahdi Industries Group, for their ties to missile proliferation. 

"As long as Iran's nuclear ambitions continue to threaten the international community, the United States will use its authorities to target Iran's efforts to sell and acquire items used to develop weapons of mass destruction and the missiles capable of carrying them," said Stuart Levey, Treasury's Under Secretary for Terrorism and Financial Intelligence (TFI).  "We have now taken steps to financially isolate thirteen entities tied to Iranian proliferation, and will continue to act aggressively against this grave threat."

This action was taken pursuant to Executive Order 13382, an authority aimed at financially isolating proliferators of weapons of mass destruction, their supporters, and those contributing to the development of missiles capable of delivering WMD.  Designations under E.O. 13382, which is administered and enforced by the Treasury's Office of Foreign Assets Control (OFAC), prohibits all transactions between the designees and any U.S. person and freezes any assets the designees may have under U.S. jurisdiction.

Sanam Industrial Group and Ya Mahdi Industries Group are being designated by OFAC because they are owned or controlled by, or act or purport to act for or on behalf of, directly or indirectly, the Aerospace Industries Organization (AIO), which the United States Government designated in the annex to E.O. Order 13382.  AIO is a subsidiary of the Iranian Ministry of Defense and Armed Forces Logistics, and manages and coordinates Iran's missile program and oversees all of Iran's missile industries.  

The Sanam Industrial Group, a subordinate to the AIO, has purchased millions of dollars worth of equipment on behalf of the AIO from entities associated with missile proliferation.

Ya Mahdi Industries Group is also subordinate to the AIO and has been involved in international purchases of missile-related technology and goods on behalf of the AIO.

Background on E.O. 13382

Today's action builds on President Bush's issuance of E.O. 13382 on June 29, 2005.  Recognizing the need for additional tools to combat the proliferation of WMD, the President signed the E.O. authorizing the imposition of strong financial sanctions against not only WMD proliferators, but also entities and individuals providing support or services to them. 

In the annex to E.O. 13382, the President identified eight entities operating in North Korea, Iran, and Syria for their support of WMD proliferation.  E.O. 13382 authorizes the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, and other relevant agencies, to designate additional entities and individuals providing support or services to the entities identified in the annex to the Order. 

In addition to the eight entities named in the annex of E.O. 13382 and the two named today, the Treasury Department has designated sixteen entities and one individual as proliferators of WMD, specifically:

  • Eight North Korean entities on October 21, 2005;
  • Two Iranian entities on January 4, 2006;
  • One Swiss individual and one Swiss entity tied to North Korean proliferation activity on March 30, 2006; and
  • Four Chinese entities and one U.S. entity tied to Iranian proliferation activity on June 13, 2006.

The designations announced today are part of the ongoing interagency effort by the United States Government to combat WMD trafficking by blocking the property of entities and individuals that engage in proliferation activities and their support networks.

 

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