Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), in partnership with the U.S. Department of Justice, imposed measures against a network involved in procuring unmanned aerial vehicle components for Iran’s Qods Aviation Industries (QAI). The entities targeted include those based in Iran, the United Arab Emirates (UAE), and the People’s Republic of China (PRC).

This action is part of the continued enforcement of sanctions following National Security Presidential Memorandum 2, issued by the President on February 4, 2025, which calls for maximum pressure on Iran.

“Iran’s proliferation of UAVs and missiles—both to its terrorist proxies in the region and to Russia for its use against Ukraine—continues to threaten civilians, U.S. personnel, and our allies and partners,” said Secretary of the Treasury Scott Bessent. “Treasury will continue to disrupt Iran’s military-industrial complex and its proliferation of UAVs, missiles, and conventional weapons that often end up in the hands of destabilizing actors, including terrorist proxies.”

These measures were executed under Executive Order 13382, which focuses on weapons of mass destruction and their delivery means. OFAC had previously placed QAI on its list under the same order in 2013. Other entities related to Iran's defense operations, like Iran Aircraft Manufacturing Industrial Company (HESA) and Shahid Bakeri Industrial Group (SBIG), were designated in prior years.

In conjunction, the Justice Department announced charges against two Iranian individuals, Hossein Akbari and Reza Amidi, along with the Iranian company Rah Roshd Company. These charges relate to conspiracy in supporting the Iranian Revolutionary Guard Corps (IRGC) and attempts to acquire U.S. technology for Iranian drones. “The Justice Department will continue to put maximum pressure on the Iranian regime. We will relentlessly dismantle illicit supply chains funneling American technology into the hands of Iran's military and terrorist organizations and pursue those complicit in operations that threaten our country," stated Sue J. Bai, head of the Justice Department's National Security Division.

Rah Roshd International Trade Exchanges Development is one of the primary entities involved and has collaborated in procuring key components for aviation and missile programs. Other companies, such as UAE-based Infracom Communication Networks and PRC-based Zibo Shenbo Machinelectronics Co Ltd, are noted participants in this network.

There are also UAE-based entities like Diamond Castle Electronics Trading LLC and Future Trends Goods Wholesalers LLC that serve as financial intermediaries supporting transactions for Rah Roshd. Additionally, Phenomena International General Trading LLC has been identified for its role in aiding Infracom.

These designations mean that all properties of the involved parties within the U.S. are blocked, and transactions by U.S. persons are generally prohibited. Violations can lead to civil or criminal penalties.

The announcement underscores the broader intention behind OFAC's sanctions, emphasizing change in behavior rather than punishment. It also outlines the possibility of removal from the SDN List under certain conditions.

Further information on the individuals and entities designated by these sanctions can be accessed through the appropriate channels.