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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning two entities and two individuals for their role in developing and procuring components for sensitive navigational systems for the Iranian military. The Islamic Revolutionary Guard Corps Aerospace Force Self-Sufficiency Jihad Organization (IRGC ASF SSJO) and other Iranian organizations rely on these strategic components that are necessary for the production and proliferation of unmanned aerial vehicles (UAVs) and missiles. Concurrent with this action, the U.S. Department of State is designating one individual and two entities involved in Iranian UAV and missile development. Treasury’s action was taken in coordination with the Department of Commerce and the Department of Justice, the latter of which charged and helped coordinate the arrest of one of the individuals OFAC is sanctioning today.

“Iran continues to try to acquire these critical components covertly to facilitate the production of its ballistic missile and UAV weapon systems,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “The United States will continue to disrupt Iran’s attempts to provide its deadly weapons to Russia, its terrorist proxies, and other destabilizing actors around the globe.”

Today’s action was taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their means of delivery. The Department of State designated the IRGC ASF SSJO pursuant to E.O. 13382 on July 18, 2017 for engaging, or attempting to engage, in activities or transactions that have materially contributed to, or pose a risk of materially contributing to, the proliferation of weapons of mass destruction or their means of delivery.

UAV NAVIGATIONAL SYSTEM PROCUREMENT

Iran-based Sanat Danesh Rahpuyan Aflak Company Ltd (SDRA or SADRA) consults, designs, manufactures, and supplies navigation, automation, and instrumentation systems, including those for use in cruise and ballistic missiles, UAVs, unmanned underwater vehicles, and unmanned surface vessels. One of SDRA’s primary systems is the SEPEHR navigation system that is equipped with a tactical MEMS (micro-electromechanical systems) sensor, global positioning system, and an inertial measurement unit, which makes the SEPEHR appropriate for aircraft and UAVs. From 2022 to 2023, SDRA sold over one thousand SEPEHR navigational systems to the IRGC ASF SSJO, which constituted a significant portion of SDRA’s net income for the time period. The IRGC ASF SSJO is involved in Iranian ballistic missile research and development and manages Iran’s production of Shahed-series UAVs. 

SDRA is being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, the IRGC ASF SSJO, a person whose property and interests in property are blocked pursuant to E.O. 13382.

Iran-based Mohammed Abedininajafabadi (Abedininajafabadi) is the Chief Executive Officer, member of the board of directors, and minority shareholder of SDRA. Iran-based Kaveh Merat (Merat) is the Chief Technology Officer, chairman of the board of directors, and minority shareholder of SDRA. 

Abedininajafabadi and Merat are being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, SDRA, a person whose property and interests in property are blocked pursuant to E.O. 13382. 

Abedininajafabadi is the sole member of the board of directors and Chief Executive Officer of the Switzerland-based Illumove SA, a company whose sole purpose is to represent SDRA’s interests abroad, including its procurement of Western electronics and other technology. 

Illumove SA is being designated pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, Abedininajafabadi, a person whose property and interests in property are blocked pursuant to E.O. 13382.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

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