Head Of Iranian Sanctions-Busting Scheme Sentenced To Federal Prison

Success In Undermining Sanctions Highlights Threat To U.S. Financial Institutions

(New York, N.Y.) – Yesterday, Seyed Sajjad Shahidian, founder and CEO of PAYMENT24, was sentenced to nearly two years in federal prison for conspiring to circumvent U.S. sanctions imposed against Iran. Shahidian is guilty of using PAYMENT24 to establish a sanctions-busting scheme using PayPal, fraudulent passports, and Visa gift cards to facilitate illegal financial transactions with U.S.-based businesses. PAYMENT24 was successful in funnelling millions of dollars into Iran over nearly a decade.

United Against Nuclear Iran (UANI) tracks the use of similar online payment and exchange platforms that can potentially expose U.S. financial institutions to sanctions violations. Recently, UANI highlighted Iranicard, which has targeted leading credit card issuers such as Visa, MasterCard and American Express, as well as fintech firms like PayPal and Skrill. Iranicard clients include multiple sanction-designated entities and other entities of concern, including many companies with links to the Islamic Revolutionary Guard Corps (IRGC) – a Foreign Terrorist Organization – which controls at least one-third of Iran’s economy, including businesses worth a combined $28 billion and 15 to 25 percent of the Iranian stock market. 

If left unchecked, Iranicard and its clones should be expected to prise open throughways to SWIFT transactions, international remittances, and the fraudulent provision of international credit cards, while providing safe passageways for IRGC-affiliated companies to access restricted international markets. Such an outcome would be disastrous to the global effort to curb terror financing and protect international banking. It would demonstrate to bad actors everywhere the ease by which trusted institutions can be undermined, if only with a little creativity. 

The U.S. must work toward shutting down subversive schemes and punishing adversaries that feel they have a free hand to undermine sanctions and degrade U.S. national security. Ultimately, cutting off Iran’s financial sector in its entirety is essential to protect the integrity of global banking, bank customers and investors against the regime. 

To read UANI’s blog post, Iran’s Sanctions-busting Money Transfer Websites Target AMEX, Visa, Mastercard, please click here. 

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