World
US Targets Eight Canadian Money‑Services Firms for Iran‑Related Transactions
The U.S. Treasury Department announced on Friday that it was sanctioning eight Canadian money‑services companies for allegedly facilitating international transactions involving Iran. The Treasury said the firms were helping Tehran and people connected to the country exchange Iranian rials and other currencies for digital assets. It also claimed that some of the entities had worked with Ryan Wedding, a former Olympian who the FBI has accused of running one of the world’s largest cocaine networks. The U.S. coordinated the action with Canada’s financial‑intelligence unit, Fintrac, and the Financial Crimes Enforcement Network as part of a broader effort to isolate Tehran’s economy under Operation Economic Outcast. Treasury Secretary Scott Bessent said Canada could not serve as a safe haven for illicit financial facilitators that provide sanctions‑evasion services to the Iranian regime and its proxies. Fintrac reiterated its commitment to controlling virtual‑currency businesses and noted that it had revoked the registrations of 161 money‑services firms in 2026 alone, more than in the previous three years combined. Canadian law limits Fintrac’s ability to share information about compliance actions beyond monetary penalties. The Treasury chief criticized Canada’s oversight of non‑financial institutions that handle sensitive money, including real‑estate firms and lawyers, citing an evaluation by the Financial Action Task Force. The move comes amid a strained U.S.–Canada relationship that grew more tense during the Trump administration, with trade disputes and retaliatory tariffs. --With assistance from Melissa Shin. More stories like this are available on bloomberg.com
Frequently asked questions
How many Canadian money‑services firms were sanctioned by the U.S. Treasury?
Eight.
What was the main reason for the sanctions?
The firms were alleged to facilitate international transactions involving Iran, helping exchange Iranian rials and other currencies for digital assets.
Which U.S. agencies coordinated the sanctions with Canada?
The U.S. Treasury coordinated with Canada’s Fintrac and the Financial Crimes Enforcement Network.