Wall Street Journal: Hong Kong Aids Iran in Evading Sanctions to Obtain Western Technology
The Wall Street Journal reported that Hong Kong has assisted Iran in evading international sanctions and acquiring Western technology. The US Treasury has identified Hong Kong companies involved in supplying sensitive equipment to Iran's missile program since 2019, raising concerns about the proliferation of shell companies in Hong Kong.
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- 📰 Published: April 12, 2026 at 19:59
- 🔍 Collected: April 12, 2026 at 21:00 (1h 1m after Published)
- 🤖 AI Analyzed: April 13, 2026 at 09:22 (12h 21m after Collected)
The Wall Street Journal reported yesterday that Hamed Dehghan, CEO of a trading company in the Iranian capital Tehran, is one such example.
In 2019, the U.S. Treasury accused Dehghan of using a Hong Kong company to acquire over US$1 million worth of sensitive equipment for Iran's missile program and entities associated with the Islamic Revolutionary Guard Corps (IRGC).
The U.S. Treasury's goal is to prevent companies from being used to obtain controlled goods, but it is relatively easy to establish new companies in Hong Kong.
Subsequently, the U.S. Treasury further accused Dehghan's associated entities of purchasing millions of dollars worth of controlled Western technology for Iranian companies through a series of shell companies, including developers of the "Shahed" attack drones.
An analysis by the U.S. Treasury found that financial transactions related to Iranian shadow banking by Hong Kong entities could reach US$4.8 billion in 2024.
In 2024, the U.S. government blacklisted three more Hong Kong companies, accusing Dehghan's associated entities of using these companies to obtain millions of dollars worth of parts for Iranian companies.
The proliferation of shell companies in Hong Kong is so severe that U.S. authorities began implementing a new strategy in October last year, targeting the addresses of institutions responsible for company registration, hoping to make it more difficult to establish shell companies. (Translator: Chen Yen-chun) 2026-04-12
In 2019, the U.S. Treasury accused Dehghan of using a Hong Kong company to acquire over US$1 million worth of sensitive equipment for Iran's missile program and entities associated with the Islamic Revolutionary Guard Corps (IRGC).
The U.S. Treasury's goal is to prevent companies from being used to obtain controlled goods, but it is relatively easy to establish new companies in Hong Kong.
Subsequently, the U.S. Treasury further accused Dehghan's associated entities of purchasing millions of dollars worth of controlled Western technology for Iranian companies through a series of shell companies, including developers of the "Shahed" attack drones.
An analysis by the U.S. Treasury found that financial transactions related to Iranian shadow banking by Hong Kong entities could reach US$4.8 billion in 2024.
In 2024, the U.S. government blacklisted three more Hong Kong companies, accusing Dehghan's associated entities of using these companies to obtain millions of dollars worth of parts for Iranian companies.
The proliferation of shell companies in Hong Kong is so severe that U.S. authorities began implementing a new strategy in October last year, targeting the addresses of institutions responsible for company registration, hoping to make it more difficult to establish shell companies. (Translator: Chen Yen-chun) 2026-04-12