US blacklists global network of 'front' firms

A global network of private companies were blacklisted by the US on Tuesday for providing revenue to the Iranian government and helping Tehran evade international sanctions on its nuclear programme, the US Treasury Department said.

The move targets 37 companies spread across the world, from Iran to Croatia, Germany and South Africa, and is the fourth action the US has taken in the past week to sanction Iran's government over its atomic programme.them risk getting cut off from the US financial system.

The sanctions prohibit US citizens and companies from dealing with the firms. Any foreign financial institutions dealing with them risk getting cut off from the US financial system.

The Treasury Department said the companies are governed by the Execution of Imam Khomeini's Order, or EIKO - referring to Iran's Supreme Leader Ayatollah Ali Khamenei - and earn tens of billions of dollars in profits.

The companies take advantage of preferential loan rates from Iranian banks and sell and manage real estate holdings, including properties confiscated from Iranians who do not live in the country full-time, the Treasury said.

It said the firms have business links to Iran's government but usually have non-Iranian or Iranian expatriate owners to get around restrictions on the government's ability to do business in Europe and other parts of the world.