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Investing.com -- The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated five entities and one individual on Thursday for supporting Iran’s military aircraft production.
The sanctions target organizations based in Iran, Hong Kong, Taiwan, and China that have been procuring technology for the Iran Aircraft Manufacturing Industrial Company (HESA), a state-owned subsidiary of Iran’s Ministry of Defense that produces military aircraft and Ababil-series unmanned aerial vehicles used by the Islamic Revolutionary Guard Corps.
"Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the United States, our servicemembers and our partners and allies in the region," said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley.
The action was taken under Executive Order 13382, which targets proliferators of weapons of mass destruction and their delivery systems. HESA was previously designated in September 2008 for being controlled by Iran’s Ministry of Defense and supporting the IRGC.
Among those sanctioned is Iran-based Control Afzar Tabriz Co Ltd and its CEO Javad Alizadeh Hoshyar for procuring computer numerical control machines for HESA. These machines are used in aerospace manufacturing to create precise components for military aircraft.
The Treasury also designated Hong Kong-based Clifton Trading Limited, which served as an intermediary to obscure Control Afzar’s involvement, and Taiwan-based companies Mecatron Machinery Co Ltd and Joemars Machinery and Electric Industrial Co Ltd, which shipped equipment to Iran while circumventing sanctions. China-based Changzhou Joemars Industrial Automation Co Ltd, a subsidiary of Joemars Machinery, was also sanctioned.
As a result of these designations, all U.S.-based property and interests of the designated persons are blocked, and U.S. persons are generally prohibited from transacting with them. Entities owned 50% or more by blocked persons are also affected. Violations may result in civil or criminal penalties, and foreign financial institutions risk secondary sanctions for significant transactions with designated entities.
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