Washington, Oct 22
The United States has sanctioned a law firm, shipping agents and vessel operators accused of helping Iran conceal ownership of ships and move oil and other commodities, extending its financial crackdown to the professional services supporting Tehran’s overseas trade.
The Treasury Department on Wednesday (local time) targeted Karnakis and Karnakis, a law firm based in Panama and Greece, five people associated with it, and maritime businesses in Singapore and Dubai. Nine vessels were identified as blocked property.
Treasury said the law firm had registered shipping companies whose vessels transported hundreds of millions of dollars’ worth of Iranian petroleum, petrochemicals and steel. It accused employees of serving as company directors and officers to conceal the actual owners.
“Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm, if you are supporting the Iranian regime, we will find you and sanction you,” Treasury Secretary Scott Bessent said.
The action also includes a financial investigation involving a Greek bank. Treasury said its Financial Crimes Enforcement Network, or FinCEN, had issued an administrative subpoena under the Bank Secrecy Act to investigate the bank’s potential ties to Iran and its proxies.
The bank was not named. Treasury described the step as an investigation, without announcing a finding of wrongdoing against the institution.
FinCEN was coordinating with European partners, including authorities in Greece, and had separately sought information about banks’ relationships with Iranian financial institutions already under US sanctions, the department said.
Among the maritime businesses designated was Roxette Maritime Shipping and Trading S.A., which Treasury said operates and manages seven Panama-flagged cargo vessels. Karnakis and Karnakis serves as its corporate agent.
Treasury identified the vessels as Anemos, Gloris, Pride, Destiny, Flamingo 1, Harmony and Prince. It said Anemos, Gloris and Pride had transported Iranian-origin goods, including petrochemicals and steel, during the past year.
Singapore-based Amigoz Singapore PTE. Ltd. was sanctioned over its alleged role in providing services for Iranian oil shipments. Treasury said it acted as an agent for a crude shipment overseen by a company supporting commodity allocations to Iranian military entities.
The department also designated Dubai-based Whales Shipping Line LLC. It alleged that the company acted as a shipping agent for a sanctioned business involved in purchasing Iranian petrochemicals and conducted business with Amigoz.
Two UAE-flagged support vessels owned by Whales, Whales Diamond and Whales Pearl, were identified as blocked property.
The sanctions freeze property within US jurisdiction belonging to the designated parties and generally prohibit US persons from transactions involving that property, unless authorised or exempt. The restrictions also cover entities owned at least 50 per cent by blocked persons.
Treasury warned that foreign financial institutions could face restrictions on access to US correspondent banks.
In a separate statement, State Department spokesman Tommy Pigott urged governments, flag registries, port authorities and private businesses to identify warning signs of sanctions evasion and stop dealing with those facilitating it.
Operation Economic Outcast was announced by Bessent on August 24. Treasury describes the initiative as a coordinated effort to disrupt the networks, intermediaries and financial channels Iran uses to export commodities and evade sanctions, working with partners in Europe, the Gulf and elsewhere.
Wednesday’s designations were imposed under Executive Order 13902, an authority used to target sectors of Iran’s economy, including petroleum and petrochemicals. Earlier actions had already targeted several shipping companies established by Karnakis and Karnakis, according to Treasury.
