A Chinese bank that doesn't seem to exist has been linked to the Quds, a terrorist group that is part of Iran's Islamic Revolutionary Guards Corps, reports Reuters.

Shenzhen Lanhao Days Electronic Technology Co. is one of several companies in China that receives money from Iran through a Chinese bank, according to a Western intelligence report obtained by Reuters. The report said that these transactions help to finance the Quds' international operation.

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However, at the company's address in Shenzhen, which is just north of Hong Kong, there is no evidence of its presence there, and the building's manager reportedly said that he had never even heard of the company.

The Quds, designated a terrorist group by the U.S. since 2007, have been blamed for IED attacks on U.S. troops in Iraq, and a report to U.S. congress claimed that there were ties between the group and Al Qaeda. The group also provides arms, aid and training for pro-Iranian militant groups in the Middle East, such as Hezbollah, Hamas and Shi'ite Muslim militias in Iraq.

Officials also say that the Quds have also armed and trained Syrian government forces during the country's civil war, which is a violation of a U.N. arms embargo.

According to the report, the Central Bank of Iran (CBI) holds accounts with the Bank of Kunlun Co, which is a unit of state-owned China National Petroleum Corp. This is how it works: Quds-owned Iranian companies, such as Bamdad Capital Development Co, transfers funds from these accounts to Chinese firms controlled by the Quds or to Chinese companies that the Quds owe money, such as Shenzhen Lanhao.

 "The money transfers from accounts held by the CBI with Bank Kunlun are initiated by the Quds Force and transferred to Chinese companies connected to the Quds Force in order to meet its financial needs," the report said. Reuters could not independently verify the claims in the report.

The report also said that upon transferring the funds from Kunlun to other entities, the Quds could use it for acquisitions in China and to finance covert activities in other countries. However, it's important to point out that there is no suggestion in the report that the Chinese government or the Bank of Kunlun was aware of the Quds connection.

In 2012, the U.S. sanctioned Kunlun for "knowingly facilitating significant transactions and providing significant financial services for designated Iranian banks," said the U.S. Department of the Treasury.

At the time, China didn't take too kindly to the sanctions as Chinese Foreign Ministry spokesman Qin Gang said they "badly violate rules governing international relations and hurt China's interests."

The sanctions against Kunlun were an attempt by the U.S. to increase pressure on Iran to prevent it from acquiring nuclear weapons.

TagsReport: Iranian Terrorists Linked to ‘Fake’ Chinese Bank, Quds, Shenzhen Lanhao Days Electronic Technology, fake bank, Iran, Terrorist group, Islamic Revolutionary Guard