KUALA LUMPUR – US Treasury Department officials will be in Malaysia next week in a bid to stop the flow of funds to Iran and its “proxy groups” for the production of drones, a report by Reuters said.
The officials include the treasury’s under secretary for terrorism and financial intelligence, Brian Nelson and general counsel, Neil MacBride. They will also be holding meetings in Singapore.
Reuters cited an unnamed source who said: “There has been an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system.”
In Singapore, talks will be on enforcement of a price cap on Russian oil and on stopping transshipments of goods that have both civilian and military purposes.
The United States is eager to stop funding for Iran and “proxy groups” and is focusing on the flow of these funds through Southeast Asia.
Iranian drones are said to have been supplied to Russia for use in its war on Ukraine and to Houthi rebels in their attacks on ships in response to Israel’s attacks on Gaza. Mid last month, Iran also launched several hundred drones against Israel, most of which were repelled by Israel’s defence forces.
Last December, Reuters reported that the US Treasury imposed sanctions on four Malaysia-based companies believed to be fronts that supported Iran’s production of drones.
The companies were among 10 entities, besides four individuals, that were slapped with US sanctions. According to Reuters, besides Malaysia, they were based in Iran, Hong Kong and Indonesia.
This “network” was said to have facilitated the procurement of components for use in Iran’s drone development programme, Reuters cited the US Treasury Department as saying. – May 4, 2024