US Treasury sanctions Hong Kong firm over alleged Iran money laundering

The United States has imposed sanctions on Hong Kong-based Kameng Trading Limited, accusing it of facilitating money laundering for Iran's Pedram Pirouzan Exchange House, also known as Opal Exchange. The U.S. Treasury stated that Kameng acted as a front company, enabling the Iranian exchange to access the international financial system.

This move is the latest in Washington's intensified campaign to squeeze Iran's financial sector. U.S. Treasury Secretary Scott Bessent announced a new operation, "Economic Outcast," which expands secondary sanctions on entities supporting Tehran. Bessent vowed to "sever every economic lifeline Tehran has left."

The sanctions against Kameng Trading Limited, incorporated in July 2024 with a registered office in Hong Kong's Tsim Sha Tsui district, highlight the increasing scrutiny of Chinese entities involved in transactions with Iran. The company's sole shareholder and director is listed as Musthafa Azheekkodantakath, an Indian passport holder residing in Dubai.

The development occurs amid rising tensions between the U.S. and China. Beijing has already vowed retaliation against recent U.S. sanctions targeting various Chinese entities, with Chinese President Xi Jinping expected to visit the U.S. in the coming weeks.

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The Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime.