Sanctions and the IRGC: Are They Weakening Iran’s Regime?

The Islamic Revolutionary Guard Corps (IRGC) is not just Iran’s most powerful military force—it is also a political, economic, and intelligence powerhouse that drives domestic oppression, global terrorism, and regional destabilization. Over the years, sanctions have been a key tool in limiting the IRGC’s activities, but the question remains: Are they effectively weakening Iran’s regime, or are they harming ordinary Iranians more?

This report examines the impact of international sanctions on the IRGC, how the organization has adapted to restrictions, and what additional measures the global community must take to effectively weaken its influence.

1. Why the IRGC Is a Target for Sanctions

The IRGC plays a central role in Iran’s economic, military, and security structure. Targeting it with sanctions is crucial because:

 • It funds terrorism through proxies like Hezbollah, Hamas, and the Houthis.

 • It controls Iran’s economy, monopolizing industries from oil and gas to construction and banking.

 • It suppresses protests and violently cracks down on Iranian activists and dissidents.

 • It conducts cyber warfare and assassination plots against opposition figures and foreign officials.

Given these threats to global security, the IRGC has been heavily sanctioned, but have these efforts been effective?

2. Major Sanctions Imposed on the IRGC

A. U.S. Sanctions

The United States has led global efforts to sanction the IRGC:

 • 2017 – The U.S. Treasury Department designated the IRGC as a Specially Designated Global Terrorist (SDGT).

 • 2019 – The Trump administration designated the IRGC as a Foreign Terrorist Organization (FTO), making it the first state-run military to be labeled as such.

 • 2020-Present – The U.S. has sanctioned hundreds of IRGC-linked entities involved in money laundering, weapons smuggling, and human rights abuses.

B. European Union (EU) Sanctions

The EU has imposed:

 • Asset freezes and travel bans on IRGC officials.

 • Restrictions on Iranian banks suspected of funding terrorism.

 • Limited sanctions on IRGC-linked arms manufacturers.

However, the EU has not fully designated the IRGC as a terrorist organization, which allows many of its financial networks to continue operating.

C. United Nations Sanctions (Lifted in 2015, Partially Reimposed in 2023)

 • The 2015 nuclear deal (JCPOA) led to the lifting of UN sanctions on Iran, allowing the IRGC to regain economic power.

 • After Iran’s continued support for terrorism, several UN restrictions on arms trade were reinstated in 2023.

3. How Effective Have Sanctions Been?

A. Sanctions Have Limited the IRGC’s Global Operations

 • IRGC-backed militias in Iraq, Lebanon, and Yemen have faced financial shortages, reducing their ability to carry out attacks.

 • International banks have cut ties with IRGC-linked companies, limiting Iran’s access to global markets.

 • The IRGC’s weapons production has slowed, affecting drone and missile development.

B. The IRGC Has Adapted and Evaded Sanctions

Despite heavy restrictions, the IRGC has found ways to bypass sanctions:

 1. Oil Smuggling Networks – The IRGC sells oil through front companies in China, Venezuela, and Syria.

 2. Cryptocurrency & Money Laundering – The IRGC uses digital currencies to bypass global banking restrictions.

 3. Black Market Arms Trade – IRGC-linked groups buy and sell weapons and drones to conflict zones.

 4. Shell Companies in Europe and Asia – The IRGC operates fake companies to secure business contracts in construction, mining, and shipping.

C. Economic Sanctions Have Hurt Ordinary Iranians More Than the IRGC

 • High inflation and currency devaluation have made life harder for Iranian citizens.

 • The IRGC controls Iran’s economy, meaning the elite profit from smuggling and corruption, while ordinary people suffer.

 • Protests have erupted across Iran, blaming the regime for economic mismanagement.

While sanctions weaken Iran’s economy, they have not fully dismantled the IRGC’s power—instead, the regime has shifted the burden onto its people.

4. What More Can Be Done?

A. Full Terrorist Designation of the IRGC by the EU, UK, and Canada

 • The European Union and UK must fully designate the IRGC as a terrorist organization to cut off its operations in Europe.

 • Canadian lawmakers have debated labeling the IRGC as a terrorist entity but have yet to act.

 • A full designation would block all IRGC-linked financial activity, limit travel, and disrupt global arms sales.

B. Strengthening Enforcement of Sanctions

 • Increase intelligence cooperation to track IRGC smuggling networks.

 • Crack down on Iranian front companies operating in Europe, Asia, and Latin America.

 • Target IRGC-run cyber units that engage in hacking and digital espionage.

C. Supporting Iranian Protesters and Activists

 • Provide secure internet access (VPNs, satellite technology) to help activists bypass IRGC digital censorship.

 • Expand humanitarian aid to help sanction-affected citizens without benefiting the regime.

 • Sanction IRGC commanders directly responsible for human rights violations, ensuring they cannot escape justice.

 Conclusion: Are Sanctions Weakening the IRGC?

Yes—but not enough. Sanctions have reduced the IRGC’s financial power and weakened its ability to fund terrorist groups, but loopholes and weak enforcement have allowed it to survive and adapt. Ordinary Iranians bear the brunt of economic hardship, while the IRGC elite continues to profit from corruption, smuggling, and global alliances.