The IRGC’s Economic Control: How Corruption Fuels Oppression in Iran

The Islamic Revolutionary Guard Corps (IRGC) is not only a military force but also the most powerful economic entity in Iran, controlling billions of dollars in industries ranging from oil and construction to banking and telecommunications. Through systemic corruption, monopolies, and illicit financial networks, the IRGC has built an economic empire that fuels domestic repression, funds terrorism, and sustains the Iranian regime’s grip on power.

While ordinary Iranians struggle under economic mismanagement, inflation, and international sanctions, the IRGC’s elite members and affiliated businesses continue to profit. This report examines how the IRGC exploits Iran’s economy, the impact of its corruption on Iranian citizens, and why stronger global action is needed to dismantle its financial empire.

1. How the IRGC Controls Iran’s Economy

Since the 1979 Islamic Revolution, the IRGC has expanded beyond its military duties, taking control of Iran’s most lucrative industries.

A. IRGC-Owned and Affiliated Companies

The IRGC operates through front companies and state-backed enterprises, controlling major sectors of the Iranian economy:

 1. Oil and Gas Industry

 • The IRGC dominates Iran’s oil exports, using sanctions evasion tactics to sell crude oil through illegal networks.

 • Companies like Khatam al-Anbiya Construction Headquarters profit from multi-billion-dollar energy contracts.

 • Smuggles oil to China, Venezuela, and Syria, bypassing restrictions.

 2. Construction and Infrastructure

 • The IRGC’s Khatam al-Anbiya group controls Iran’s roads, railways, and infrastructure projects.

 • Wins state contracts without competition, blocking private businesses from entering the market.

 • Uses forced labor and embezzlement schemes to enrich its leaders.

 3. Telecommunications and Cyber Control

 • Owns Iran’s largest telecom companies, using them for domestic surveillance and internet censorship.

 • Profits from high internet fees, while blocking access to independent news and social media.

 4. Banking and Money Laundering

 • Controls IRGC-affiliated banks, using them for money laundering and sanctions evasion.

 • Uses exchange offices to manipulate Iran’s currency, worsening inflation.

 • Runs covert financial networks through Dubai, Turkey, and Malaysia.

Through these economic sectors, the IRGC dominates Iran’s financial system, ensuring that its wealth and power remain unchecked.

2. Corruption and the IRGC’s Economic Crimes

The IRGC’s economic empire is built on corruption, with billions stolen from state funds, embezzled through fake contracts, and funneled into personal accounts.

A. Government Funds Stolen by IRGC Leaders

 • Multi-billion-dollar embezzlement cases involving IRGC-controlled companies are common.

 • Public funds meant for housing, healthcare, and infrastructure are redirected to IRGC projects.

B. Black Market Trade and Smuggling Operations

 • The IRGC runs black market trade networks, smuggling gold, drugs, and oil to evade sanctions.

 • Generates billions in illicit revenue while depriving the Iranian economy of legal exports.

C. Crushing Private Businesses

 • The IRGC eliminates business competitors by imposing legal barriers and military threats.

 • Small businesses face unfair taxes and restrictions, ensuring IRGC-controlled companies monopolize the economy.

The IRGC’s economic corruption has not only stolen Iran’s wealth but has also pushed the country deeper into poverty and economic crisis.

3. The Impact on Iranian Citizens

While the IRGC profits, ordinary Iranians suffer due to:

A. Hyperinflation and Currency Devaluation

 • Rampant corruption and mismanagement have devalued Iran’s currency, making basic goods unaffordable.

 • The IRGC’s illegal financial operations contribute to skyrocketing inflation.

B. Unemployment and Economic Hardship

 • IRGC-owned businesses dominate Iran’s job market, leaving few opportunities for independent workers.

• Youth unemployment is at crisis levels, forcing many Iranians to leave the country.

C. Humanitarian Crisis and Worsening Living Conditions

 • Funds meant for education, healthcare, and welfare programs are diverted to IRGC military projects.

 • Poor infrastructure and water shortages have led to protests across the country.

Despite Iran’s vast natural resources, the IRGC’s corruption has left millions in poverty while its leaders enjoy luxury lifestyles abroad.

4. How the IRGC Uses Its Economic Power to Fund Terrorism

The IRGC’s economic control extends beyond Iran, using its wealth to fund terrorism and regional destabilization.

A. Funding Proxy Militias

 • The IRGC provides over $700 million annually to Hezbollah in Lebanon.

 • Funds Hamas and Palestinian Islamic Jihad to carry out rocket attacks on Israel.

 • Supports Shiite militias in Iraq, Syria, and Yemen, fueling conflicts.

B. Arms Trafficking and Military Expansion

 • The IRGC produces drones and missiles, supplying them to terrorist groups and rogue states.

 • Smuggles weapons through Syria, Iraq, and Afghanistan, violating international laws.

C. Assassinations and Global Terrorist Plots

 • Uses economic profits to fund assassination attempts on opposition figures.

 • IRGC-linked terror cells have been exposed in Europe, Africa, and South America.

The IRGC’s wealth is not used for Iran’s people—it is used to spread war, violence, and oppression worldwide.

5. What the International Community Must Do

A. Fully Designate the IRGC as a Terrorist Organization

 • The U.S. has already designated the IRGC as an FTO (Foreign Terrorist Organization).

 • The EU, UK, and Canada must follow, cutting off IRGC funding channels and financial networks.

B. Expand Economic Sanctions on IRGC-Controlled Businesses

 • Target IRGC-linked banks, energy companies, and front businesses.

 • Sanctions must be strictly enforced, preventing China, Russia, and Turkey from aiding Iran’s financial evasion.

C. Expose and Shut Down IRGC Front Companies

 • Governments must investigate and close IRGC-linked businesses in Dubai, Turkey, Malaysia, and Latin America.

 • Increase cybersecurity measures to prevent IRGC hacking and financial fraud.

D. Support the Iranian People

 • Provide humanitarian aid directly to Iranian citizens, not the regime.

 • Support independent journalists and whistleblowers exposing IRGC corruption.

 • Ensure economic pressure targets the IRGC, not ordinary Iranians.

Without stronger global action, the IRGC’s financial empire will continue to fund repression, war, and human rights abuses.

 Conclusion: The IRGC Must Be Cut Off from Iran’s Economy

The IRGC is not just a military force—it is an economic empire built on corruption, exploitation, and terror. While ordinary Iranians suffer under economic crisis, unemployment, and inflation, the IRGC elite continues to profit.