The United States has sanctioned eight currency-exchange businesses in Canada over allegations that they helped Iranian entities bypass financial restrictions. The US Treasury Department announced the measures on Friday under its campaign called Operation Economic Outcast, targeting firms operating in Ontario and British Columbia.
Treasury officials said some of the businesses converted Iranian rials and other currencies into digital assets, including cryptocurrency, to launder proceeds. Some also allegedly assisted a suspected leader of a drug trafficking ring. Treasury Secretary Scott Bessent said Canada must not serve as a haven for financial intermediaries providing sanctions evasion services to Iran’s government and its proxies.
The measures effectively exclude the businesses from the financial system based on the US dollar. Any assets they hold in the United States are frozen, and American individuals and entities are prohibited from conducting transactions with them. Among the businesses identified by the Treasury were Million Exchange, Amin Exchange and Cryptoyal.
The Ontario businesses listed were Diverse Trade Inc, which trades as Million Exchange; Top PC Technician Inc; 2397639 Ontario Ltd, which trades as Farah Exchange; CCC Inc; B Galaxy Inc, which operates as Cryptoyal from the same location as CCC Inc; and Darvish Exchange. In British Columbia, the Treasury identified 1380079 BC Limited, trading as Amin Exchange, and NIA Nations Currency Ltd.
Canada’s Financial Transactions and Reports Analysis Centre, known as FINTRAC, said shortly after the announcement that it had worked with the US Financial Crimes Enforcement Network, or FinCEN, on the sanctions against the money service businesses. In its Friday statement, FINTRAC said it regularly cooperates with foreign financial intelligence agencies to address money laundering, terrorist financing and sanctions evasion. It said bilateral agreements allow it to share intelligence with counterparts around the world.
In a separate announcement on Friday, the Treasury said FinCEN, its unit responsible for combating money laundering, had issued an order against money exchanger MEXC Global. The order bars US financial institutions from processing transfers involving the Seychelles-incorporated business. FinCEN alleged that MEXC Global facilitated at least $16 billion in illicit transactions connected to Iran, North Korea and Russia, along with transactions involving other sanctioned actors.
The Treasury describes its broader sanctions effort as an attempt to cut the economic resources supporting Iran’s government and the Islamic Revolutionary Guard Corps. Canada also designates the IRGC as a terrorist organisation. The US claimed last week that its campaign had sent Iran’s rial to new lows and pushed inflation to approximately 90 percent.
Earlier in the week, on Wednesday, the Treasury sanctioned a network operating in India and Turkiye that it accused of helping Iran evade restrictions affecting oil exports and airlines. According to the department, the network is run by Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, who are based in Chandigarh in northern India.
