U.S. sanctions eight Canadian currency exchanges accused of helping Iran evade sanctions

The U.S. Treasury has sanctioned eight Canada-based currency-exchange businesses in Ontario and British Columbia that it says helped Iranian entities evade financial sanctions, in coordination with Canada's financial intelligence agency FINTRAC.

The United States has imposed sanctions on eight Canadian currency-exchange businesses accused of helping Iranian entities circumvent financial sanctions. The Treasury Department announced the measures Friday as part of what it calls "Operation Economic Outcast."

The businesses are based in Ontario and British Columbia and include Million Exchange, Amin Exchange and Cryptoyal, according to the Treasury. It said some of them laundered proceeds by converting Iranian rials and other currencies into digital assets such as cryptocurrency, and that some helped an alleged head of a drug trafficking ring.

"Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies," Treasury Secretary Scott Bessent said. The sanctions cut the firms off from the dollar-based financial system, freezing any U.S. assets and barring transactions with Americans.

The Treasury building and the Albert Gallatin statue in Washington (file photo)

Canada's Financial Transactions and Reports Analysis Centre (FINTRAC) said it worked with the U.S. Financial Crimes Enforcement Network (FinCEN) on the action. FinCEN separately issued an order barring U.S. financial institutions from processing transfers involving Seychelles-incorporated exchange MEXC Global, which it says facilitated at least $16 billion in illicit transactions linked to Iran, North Korea and Russia. Canada lists Iran's Revolutionary Guard Corps as a terrorist organization.