Sanctions Watch | Weekly Vol. 82

Sanctions Watch Vol 82

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

1. OFAC Sanctions Iranian and Russian Entities for Attempted Interference in U.S. 2024 Election

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on December 31, 2024, against entities in Iran and Russia for attempting to interfere in the 2024 U.S. election. Designated under Executive Order (E.O.) 13848, these include the Cognitive Design Production Center (CDPC), an Iranian Islamic Revolutionary Guard Corps (IRGC) subsidiary, and the Moscow-based Center for Geopolitical Expertise (CGE), linked to the Russian Main Intelligence Directorate (GRU).

Iranian entities targeted U.S. electoral processes through social engineering and data theft to disrupt democratic institutions. CDPC, on behalf of the IRGC, conducted influence operations to incite socio-political tensions in the U.S.

In Russia, CGE used artificial intelligence to create and disseminate disinformation, including deepfakes, targeting U.S. candidates. Directed and financed by the GRU, CGE employed fake news networks and manipulated content to interfere in the election. CGE Director Valery Korovin and other affiliates were involved in coordinating these operations.

The sanctions block all U.S.-linked property and prohibit all transactions with designated entities or individuals. These measures aim to protect U.S. democracy and prevent further interference, highlighting OFAC’s commitment to addressing malign activities under existing regulatory frameworks.

2. OFAC Sanctions Technology Firm for Assisting Malicious Cyber Operations

On January 3, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Integrity Technology Group, Incorporated (Integrity Tech), a Beijing-based cybersecurity company, for supporting Flax Typhoon, a Chinese state-sponsored cyber group. Active since at least 2021, Flax Typhoon targets U.S. critical infrastructure sectors, exploiting known vulnerabilities to gain unauthorized access to computer networks globally. The group has used legitimate remote access software to maintain control over compromised systems, targeting entities across North America, Europe, Africa, and Asia, with a specific focus on Taiwan.

Between summer 2022 and fall 2023, Flax Typhoon utilized Integrity Tech’s infrastructure to facilitate cyber intrusions, including attacks on a California-based entity. OFAC’s designation of Integrity Tech under Executive Order 13694, as amended by E.O. 13757, underscores the company’s complicity in cyber-enabled activities posing significant threats to U.S. national security and economic stability.

As a result, all Integrity Tech’s U.S.-linked assets are blocked, and transactions with the firm by U.S. persons are prohibited. The sanctions aim to disrupt cyber threats and encourage compliance. OFAC emphasizes its willingness to remove entities from its sanctions list if they demonstrate behavioral change consistent with U.S. law and policy.

3. Israel imposes economic sanctions on organisation raising money for Hezbollah

Israel has imposed economic sanctions on a fundraising organization supporting Hezbollah, a militant group classified as a terrorist organization by Israel and several other countries. The sanctioned network used crowdfunding platforms to raise significant funds, accepting donations via credit cards, bank transfers, and PayPal. The funds were reportedly intended to support Hezbollah’s operations and activists, particularly after recent incidents that involved Israeli counter-terror operations.

Israel’s Money Laundering and Terror Financing Prohibition Authority emphasized that the sanctions aim to disrupt Hezbollah’s financial networks and deter public participation in financing terrorism. This approach is part of a broader strategy by Israel to undermine Hezbollah’s operational capabilities and diminish its influence in the region. The action also highlights the growing use of digital platforms by such organizations to secure funding for their activities.

These sanctions reflect Israel’s regulatory measures to combat terror financing by targeting financial infrastructure and cutting off resources that enable groups like Hezbollah to sustain and expand their operations. This move is consistent with Israel’s ongoing efforts to mitigate security threats posed by Hezbollah in Lebanon and beyond, while sending a warning to entities involved in financing terrorism.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.