U.S. sanctions eight Canadian firms for alleged Iran sanctions evasion
The sanctions target money services businesses in Ontario and B.C. accused of providing financial lifelines to Iran.
OTTAWA · The United States Treasury Department has sanctioned eight Canadian money services businesses for allegedly helping Iran evade financial sanctions. The department announced the measures on Friday, saying the businesses in British Columbia and Ontario provided services to the Iranian regime. It also alleges several of the firms helped launder money for former Olympic snowboarder Ryan Wedding, an alleged drug kingpin. The sanctions were coordinated with Canada's Financial Transactions and Reports Analysis Centre, known as Fintrac. Treasury Secretary Scott Bessent said the action aims to disrupt Iran's financial channels worldwide.
"Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies," Bessent said in a news release. The sanctions block the firms from the U.S. dollar-based financial system, freezing any assets they hold in the United States. They also prohibit any transactions with American people or entities. The treasury said the move is part of a broader effort to cut off economic support to Iran and its Islamic Revolutionary Guard Corps.
Which Canadian companies were sanctioned?
The sanctioned businesses include Million Exchange, NIA Nations Currency, Farah Exchange, Darvish Exchange and several numbered companies. All are based in Ontario and British Columbia. The treasury alleges these companies provided financial lifelines to the Iranian government. Officials said some of the businesses have altered their names and locations to avoid detection. The department worked with Canada's anti-money laundering watchdog, Fintrac, to identify the entities.
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What is the alleged link to Ryan Wedding?
Authorities allege several of the sanctioned businesses also assisted Ryan Wedding, a former Olympic snowboarder now accused of leading a drug trafficking ring. The treasury claims Wedding used these services to convert drug proceeds into digital assets like cryptocurrency. Millions of dollars were allegedly laundered and sent abroad before his arrest in January. Wedding was taken from Mexico to the United States to face charges including drug trafficking, murder and attempted murder. He is scheduled for two trials next year, in March and October.
Wedding represented Canada in snowboarding at the 2002 Winter Olympics. U.S. authorities allege he later became involved in drug trafficking, leading to a 2010 conviction for conspiracy to distribute cocaine. After his release from prison, he is accused of resuming drug operations with the protection of Mexico's Sinaloa Cartel. Court documents state his network moved cocaine from Colombia into Mexico for distribution in the United States and Canada.
What is the broader context of these sanctions?
The sanctions represent the latest U.S. effort to clamp down on financial transactions that evade its sanctions against Iran. In August, the Trump administration expanded secondary sanctions on entities and countries that maintain business ties with Tehran. Bessent said at the time the goal was to sever every economic lifeline sustaining the Iranian regime. The treasury said Friday's action continues that pressure campaign as the conflict with Iran continues.
With files from CityNews, CBC News and Global News