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 Treasury Takes Additional Measures to Combat Iranian WMD Proliferation Iranian Nuclear & Missile Firms Targeted


6/8/2007

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The U.S. Department of the Treasury today designated four Iranian companies, Pars Tarash (a/k/a Pars Trash Company), Farayand Technique, Fajr Industries Group, and Mizan Machine Manufacturing Group, for their role in Iran's proliferation of weapons of mass destruction. 

This action was taken pursuant to Executive Order 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their supporters.  Designations under E.O. 13382 are implemented by Treasury's Office of Foreign Assets Control (OFAC), and they prohibit all transactions between the designees and any U.S. person and freeze any assets the designees may have under U.S. jurisdiction.

"So long as Iran continues to pursue a nuclear program in defiance of the international community's calls to halt enrichment, we will continue to hold those responsible to account for their conduct," said Stuart Levey, Under Secretary for Terrorism and Financial Intelligence (TFI).

Pars Tarash and Farayand Technique are owned or controlled by, or act or purport to act for or on behalf of the Atomic Energy Organization of Iran (AEOI) and/or the Kalaye Electric Company, an AEOI subsidiary designated by OFAC on February 16, 2007. 

The AEOI manages Iran's overall nuclear program and reports directly to the Iranian president. Identified by President George W. Bush in the Annex to E.O. 13382, the AEOI is the main Iranian institute for research and development activities in the field of nuclear technology, including Iran's centrifuge enrichment program and experimental laser enrichment of uranium program. 

The AEOI is named in the Annex to United Nations Security Council Resolution (UNSCR) 1737 for its involvement in Iran's nuclear program.  Pars Tarash and Farayand Technique were also listed in the Annex to UNSCR 1737 for their involvement in Iran's centrifuge program and were identified in reports of the International Atomic Energy Organization (IAEA). 

According to IAEA reports, Iran disclosed the existence of these two entities in October of 2003, and indicated that they were involved in the domestic production of centrifuge components.  It was revealed to the IAEA in January 2004 that Pars Tarash and Farayand were subsidiaries of the Kalaye Electric Company, an AEOI subsidiary.  Farayand Technique has had a number of different roles in Iran's centrifuge enrichment program, and performs quality control on components used at the uranium enrichment facility at Natanz.  Farayand Technique also has capabilities suitable for the testing and assembly of centrifuges.  Pars Tarash has been identified by the IAEA as a site used by Natanz and the Kalaye Electric Company to store centrifuge equipment. 

Also designated today are Fajr Industries Group and Mizan Machine Manufacturing Group, two entities owned or controlled by, or acting or purporting to act for or on behalf of Iran's Aerospace Industries Organization (AIO).  The AIO, which was also identified by President Bush in the Annex to E.O. 13382, is a subsidiary of the Iranian Ministry of Defense and Armed Forces Logistics, and is the overall manager and coordinator of Iran's missile program. 

Fajr Industries Group is subordinate to the AIO and involved in the production and acquisition of precision equipment for missile guidance and control systems.  Fajr has consistently procured a wide range of missile guidance and control equipment on behalf of the AIO over the years.  Since the late 1990s, Fajr has purchased high strength steel alloy, useful for guidance equipment in ballistic missiles and missile-related technology and items.  Fajr Industries Group was also identified in the Annex to UNSCR 1737 for its involvement in Iran's ballistic missile program. 

Mizan Machine Manufacturing Group is one of several front companies utilized by AIO in commercial transactions.  In particular, Mizan Machine Manufacturing Group has been used by AIO to acquire sensitive material for Iran's ballistic missile program.  For example, in April 2005, Mizan Machine Manufacturing Group purchased a state-of-the-art crane for Iran's weapons program.  An investigation of this transaction determined the crane was probably intended for use in Iran's Shahab missile program.  Cranes can be used to support missiles, like the Shahab, in the field or at storage facilities. 

Mizan Machine Manufacturing Group has also acted on behalf of the Shahid Hemmat Industrial Group (SHIG), a subordinate entity of the AIO which is listed in UNSCR 1737 for its direct role in advancing Iran's ballistic missile program.  In 2005, Mizan Machine Manufacturing Group was connected to the acquisition of equipment, on behalf of SHIG, that could be used to calibrate guidance and control instruments for more accurate targeting of Iran's ballistic missiles. 

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 entities identified in the annex of E.O. 13382, the Treasury Department has designated thirty entities and two individuals as proliferators of WMD, specifically:

  • Eight North Korean entities on October 21, 2005;
  • Two Iranian entities on January 4, 2006;
  • One Swiss entity and one Swiss individual tied to North Korean proliferation activity on March 30, 2006;
  • Four Chinese entities and one U.S. entity tied to Iranian proliferation activity on June 8, 2006.
  • Two Iranian entities on July 18, 2006;
  • Three Syrian entities on January 4, 2007;
  • One Iranian entity, one British entity, and one individual tied to Iranian missile proliferation on January 9, 2007;
  • Three Iranian entities on February 16, 2007; and
  • Four Iranian entities on June 8, 2007.

The designation announced today is 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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