The U.S. Treasury Department sanctioned Pakistani businessman Wasim Pasha Tajammal and three of his companies, alleging they supported Iran’s Ministry of Defense and Armed Forces Logistics. The action targeted 10 individuals and entities across multiple jurisdictions accused of helping procure weapons and weapons components for Iran.
Alleged Iran Procurement Network
Treasury said MODAFL oversees weapons research, production and acquisition for Iran’s armed forces. It also supervises organizations involved in developing Iran’s ballistic missiles and unmanned aerial vehicles.
The department alleged Tajammal and Cavalier Group served as third-party intermediaries for MODAFL. According to Treasury, Tajammal used professional contacts to help Iran procure and distribute weapons, and provided or attempted to provide financial, material or technological support, or goods and services, to the organization. Treasury announced the allegations alongside the sanctions. Tajammal and the company haven't responded in the article.
Tajammal is Cavalier Dynamics Private Limited’s majority shareholder and CEO in Pakistan. He also serves as a director of Cavalier Dynamics for Technologies Company in Saudi Arabia and as a director and sole shareholder of Cavalier Dynamics Teknoloji Ticaret Anonim Sirketi in Turkey. Treasury said the Saudi company is wholly owned by the Pakistani firm.
Treasury said it coordinated its action against the Saudi Arabia-based company with Saudi authorities and partners. The ownership and management details the department provided connect firms registered in Pakistan, Saudi Arabia and Turkey.
Treasury Targets Iran’s Enablers
U.S. Treasury Secretary Scott Bessent said the department would target those it accuses of providing material, technological or financial support to Iran’s regime. “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,” Bessent said in a press release.
“Treasury will not tolerate any support to the regime and will continue to identify, expose, and isolate Iran’s enablers,” he said. Bessent announced Operation Economic Outcast on August 24, 2026. The effort, dubbed “Economic D-Day,” aims to sever the remaining economic lifelines sustaining the Iranian regime.
Treasury said it had mapped networks, facilitators and financial channels Iran uses to smuggle oil, evade sanctions and fund terrorism. The department said it was working with partners across the U.S. government, the European Union, the United Kingdom, Gulf countries and others to target sources of what it described as the regime’s illicit revenue.
Financial and Defense-Sector Exposure
Treasury warned that entities facilitating money laundering or sanctions evasion for Iran risk losing access to the U.S. financial system. It also pointed to the risk of secondary sanctions for those that continue doing business with the Iranian regime, and said it would accelerate U.S. enforcement efforts.
Cavalier Group calls itself a prominent private-sector defense company in Pakistan on its website, describing itself as the country’s “only multi-domain defense company.” The company says it aims to provide locally developed critical defense solutions to Pakistan’s armed forces and works with allied countries and partners worldwide.
A message from Tajammal on the company website says it operates across land, air, information technology and cyber domains. Cavalier Group lists combat vehicles, small arms, ballistic protection equipment, tactical gear, drones, system automation and cybersecurity solutions among its products and services. Treasury alleged the group and Tajammal supported MODAFL, but didn't say the listed products were used in the alleged activity.