US sanctions 8 Canadian entities over alleged Iran links and money transfers

The US Treasury Department announced sanctions on eight Canadian entities on Friday, alleging they facilitated transactions involving Iran. These sanctions target money services involved in exchanging Iranian rials and other currencies for digital assets, enabling illegal transactions. Some of the sanctioned entities are linked to Ryan Wedding, a former Olympian accused by the FBI of running a major cocaine trafficking operation.

The move is part of a broader US strategy to isolate Iran's economy, known as Operation Economic Outcast, coordinated with Canada's financial intelligence unit, Fintrac, and the Financial Crimes Enforcement Network. According to Treasury Secretary Scott Bessent, Canada cannot serve as a safe haven for entities aiding the Iranian regime and its proxies in evading sanctions.

Fintrac defended its efforts to control virtual currency businesses, having revoked 161 money services licenses in 2026 alone, surpassing the total revoked in the previous three years. However, Canadian legislation restricts Fintrac from disclosing details about compliance actions beyond monetary penalties.

The US and Canada have faced tensions during the Trump administration, with Bessent criticizing Canada for seeking US state status without actually being one. The Treasury chief called for improved oversight of non-financial institutions, suggesting real estate firms and lawyers could be more closely monitored to prevent potential financial crimes.