Operation Economic Outcast Takes Down Iranian Military Procurement Networks
WASHINGTON—Today, under Operation Economic Outcast, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 10 individuals and entities in multiple jurisdictions that have procured weapons and weapons components for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), the entity responsible for weapons research, production, and acquisition for Iran’s armed forces. MODAFL also oversees organizations engaged in the development of Iran’s ballistic missiles and unmanned aerial vehicles (UAVs).
“Under Operation Economic Outcast, Treasury will continue to target and disrupt those who provide material, technological, or financial support that allows the Iranian regime to sustain its terrorist enterprise,” said Secretary of the Treasury Scott Bessent. “Treasury will not tolerate any support to the regime and will continue to identify, expose, and isolate Iran’s enablers.”
Today’s action further degrades the Iranian regime’s ability to reconstitute its weapons programs and increases the costs for those who choose to aid Tehran’s military procurement efforts.
OFAC is taking this action pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their means of delivery. In October 2007, the U.S. Department of State designated MODAFL and Iran’s Islamic Revolutionary Guard Corps (IRGC) pursuant to E.O. 13382 in connection with Iran’s ballistic missile program.
OPERATION ECONOMIC OUTCAST IS ISOLATING THE IRANIAN REGIME
Announced by Secretary Bessent on August 24, 2026 and dubbed “Economic D-Day,” Operation Economic Outcast is severing the remaining economic lifelines that sustain the Iranian regime. Treasury has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil, evade sanctions, and fund terror. Working with partners across the U.S. government, the European Union, United Kingdom, Gulf partners, and others, Treasury is targeting any source of the regime’s illicit revenue.
Treasury warned that any entity facilitating money laundering or sanctions evasion on behalf of Iran risks being cut off from the U.S. financial system. Treasury also emphasized the secondary sanctions exposure for those who continue doing business with the Iranian regime and will accelerate the pace of U.S. enforcement. More information on Operation Economic Outcast is available here.
MODAFL REPRESENTATIVE IN BEIJING
As a MODAFL representative in Beijing, Seyyed Asghar Alizadeh Tabatabai (Tabatabai) coordinates the procurement of finished weapons systems and dual-use components in China on Iran’s behalf.
Tabatabai is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, MODAFL.
MODAFL PROCUREMENT NETWORKS
Iran-based Kavoshcom Asia R and D Group (Kavoshcom) has procured electronics including connectors for Iran Aircraft Manufacturing Industrial Company (HESA), a MODAFL subordinate that specializes in the development of UAVs and military aircraft. Kavoshcom has also supplied electronics to Shahid Bakeri Industrial Group (SBIG), a subordinate of MODAFL’s Aerospace Industries Organization (AIO) that is responsible for Iran’s solid-fueled ballistic missile program. Iran‑based Ali Fotowat Almady is the director of Kavoshcom and has signed correspondence to HESA on behalf of Kavoshcom. OFAC designated HESA pursuant to E.O. 13382 on September 17, 2008 for being owned or controlled by MODAFL and for providing support to the IRGC. AIO and SBIG are both listed in the Annex to E.O. 13382.
Hong Kong-based EC Mojo Technology Co Limited (EC Mojo) has provided electronic components in support of Kavoshcom’s procurement efforts. China-based EC Mojo representative Li Fen has attempted to evade sanctions and export controls while providing services in support of Kavoshcom’s procurement efforts. Iran-based Kavoshcom representative Parisa Lali facilitated Kavoshcom’s procurements for HESA.
Kavoshcom is being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, MODAFL. Ali Fotowat Ahmady is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, Kavoshcom. EC Mojo, Li Fen, and Parisa Lali are being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, Kavoshcom.
Pakistan-based Waseem Pasha Tajammal (Tajammal) serves as chairman of Cavalier Group, a privately owned defense company with locations in Pakistan and internationally. Tajammal and Cavalier Group act as third-party intermediaries for Iran’s MODAFL, leveraging Tajammal’s professional network to procure and distribute weapons on MODAFL’s behalf.
Tajammal is the majority shareholder and chief executive officer of Pakistan-based Cavalier Dynamics Private Limited. Additionally, Tajammal serves as the director of Saudi Arabia-based Cavalier Dynamics for Technologies Company, which is wholly owned by Cavalier Dynamics Private Limited. Tajammal is also the director and sole shareholder of Türkiye-based Cavalier Dynamics Teknoloji Ticaret Anonim Sirketi. OFAC is taking action against Cavalier Dynamics for Technologies Company in coordination with Saudi government partners.
Tajammal is being designated pursuant to E.O. 13382 for having provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, MODAFL. Cavalier Dynamics Private Limited, Cavalier Dynamics for Technologies Company, and Cavalier Dynamics Teknoloji Ticaret Anonim Sirketi are being designated pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, Tajammal.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. Individuals located in the U.S. or abroad who provide information about sanctions violations to the Financial Crimes Enforcement Network’s whistleblower incentive program may be eligible for awards if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities with designated or otherwise blocked persons.
Furthermore, engaging in certain transactions involving the persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions. OFAC can prohibit or impose strict conditions on opening or maintaining, in the United States, a correspondent account or a payable-through account of a foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of a person who is designated pursuant to the relevant authority.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, or to submit a request, please refer to OFAC’s guidance on Filing a Petition for Removal from an OFAC List.
Click here for more information on the persons designated today.
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