U.S. Treasury Implements Sanctions Targeting Militants and Fraud

The U.S. Treasury Department executed a series of significant sanctions this past week aimed at foreign militant groups and domestic fraud schemes. These actions fit within President Donald J. Trump’s broader agenda for national security and accountability. The measures include designating various branches of the Muslim Brotherhood as terrorist organizations and targeting Iranian officials linked to violence against demonstrators.

On January 13, 2025, the Treasury’s Office of Foreign Assets Control, in collaboration with the State Department, classified the Egyptian and Jordanian branches of the Muslim Brotherhood as Specially Designated Global Terrorists. This designation, made under Executive Order 13224, aims to restrict these groups’ access to the U.S. financial system, based on allegations that they provided material support to Hamas.

Treasury Secretary Scott Bessent stated, “The Treasury Department is taking action pursuant to President Trump’s leadership by designating Muslim Brotherhood Branches as Terrorist Organizations,” emphasizing that these actions seek to dismantle networks that allegedly support terrorism. The announcement also linked the Egyptian Muslim Brotherhood’s activities to Hamas through claims of coordination and financial facilitation.

In a parallel move, the State Department designated the Lebanese Muslim Brotherhood, or al-Jamaa al-Islamiyah, as both a Foreign Terrorist Organization and a Specially Designated Global Terrorist. Additionally, the group’s secretary general, Mohammad Fawzi Taqqosh, was similarly designated. The implications of these actions include asset-blocking rules in the United States and potential penalties for foreign financial institutions involved in transactions with designated parties.

Addressing Domestic Fraud and Iranian Sanctions

On the same day, Bessent unveiled initiatives targeting what Treasury described as billions of dollars in government benefits fraud, particularly in Minnesota. These initiatives include investigations into local money services businesses and a Geographic Targeting Order mandating enhanced reporting of specific international transactions. The Treasury has alerted financial institutions to focus on fraud related to federal child nutrition programs and has initiated audits of financial institutions suspected of laundering fraud proceeds.

The following day, on January 15, 2025, Treasury escalated its pressure on Iran by sanctioning senior officials linked to the government’s violent response to protests and alleged “shadow banking” networks involved in laundering proceeds from oil sales. Among those sanctioned was Ali Larijani, identified as the secretary of Iran’s Supreme Council for National Security. The Treasury has enacted multiple executive orders against these networks, citing a “maximum economic pressure” campaign, which has already sanctioned over 875 individuals, vessels, and aircraft in 2025.

On January 16, 2025, the Treasury designated 21 individuals and entities associated with the Iran-backed group Ansarallah, known as the Houthis. The sanctions target financial channels between Iran and the Houthis, along with facilitators in Yemen, Oman, and the United Arab Emirates. The Treasury’s statement highlighted that the Houthis generate over $2 billion annually from illicit oil sales, with claims that Iran provides them a monthly shipment of oil.

Throughout these enforcement actions, the Treasury aims to disrupt the financial and logistical support for militant groups while tightening controls against domestic fraud. The department reiterated that sanctions serve to change behavior, allowing for the potential removal of parties from the sanctions list in compliance with the law.

These developments underscore the U.S. government’s commitment to addressing both international threats and domestic financial integrity through rigorous enforcement of existing sanctions and regulations.