A new analysis by the Jerusalem Center for Foreign Affairs warns that Western sanctions against Iran are being weakened by a sophisticated shadow banking network that allows the regime and the IRGC to keep moving money outside the formal banking system.
The report argues that while the US has intensified its financial campaign against Iran, including targeted sanctions, financial intelligence operations and action against shell companies, crypto channels and maritime logistics networks, Europe remains the weak link.
According to the analysis, Iran has built decentralized financial routes using shell companies, front traders, digital assets and third-country intermediaries. These networks help Tehran bypass traditional banks while continuing to fund external military activity, procurement operations and its regional terror network.
The report is especially critical of Britain. It says weak corporate transparency rules and loose oversight have allowed IRGC-linked networks to exploit the UK’s company registration system. British-registered entities give illicit actors a Western corporate “cover,” helping them open accounts, move money and sign contracts with international suppliers.