U.S. Treasury Targets Canadian Payment Firms Over Iran Links

The U.S. Treasury Department has sanctioned Canadian money services businesses over transactions linked to Iran, Reuters reported, adding a northern-border dimension to Washington's long-running campaign to cut Tehran off from the international financial system.

The penalties landed on firms operating in the payments and currency-transfer segment rather than in mainstream banking. Such businesses, which move remittances and exchange currencies for customers, have drawn growing scrutiny from U.S. authorities who argue they can act as conduits for sanctioned jurisdictions.

Designations of this kind typically freeze any U.S.-held assets, bar American citizens and companies from transacting with the named entities, and can discourage banks and payment processors abroad from handling their business for fear of losing access to dollar clearing.

The Treasury has repeatedly warned that financial intermediaries outside the United States face consequences for facilitating Iranian transactions, even indirectly. The report did not specify how many firms were named or the volume of activity involved, and no further details on the scope of the action were immediately available.