A Cyprus-based company is on a United States sanctions list in order to "put pressure on Iran's nuclear program," according to a statement from the US Treasury Department's Office of Foreign Assets Control (OFAC).
In a post by the US Embassy in Cyprus on X, it is stated that "as part of the maximum pressure campaign to end Iran's nuclear threat, sanctions were announced against those involved in Iran's oil industry, including an entity based in Cyprus. The US and Cyprus continue to work together to address global challenges and threats."
According to the US Treasury Department's announcement, the largest package of Iran-related sanctions since 2018 was issued on Thursday, targeting "a corrupt regime-linked shipping empire that has funneled billions of dollars to Tehran."
As noted, the US Treasury Department's Office of Foreign Assets Control (OFAC) has designated more than 50 individuals and entities and identified more than 50 vessels that are part of the vast shipping empire controlled by Mohammad Hossein Shamkhani (Hossein).
Hossein, the son of Ali Shamkhani, a top political advisor to Iran's Supreme Leader, according to the US, "is exploiting corruption through his father's political influence in the highest echelons of the Iranian regime to build and operate a vast fleet of tankers and container ships."
This network, as reported, transports oil and petroleum products from Iran and Russia, as well as other cargoes, to buyers around the world, earning tens of billions of dollars in profits.
"The more than 115 sanctions imposed today are the largest since the Trump administration implemented the maximum pressure campaign on Iran. These actions put America first, targeting the regime's elites who are enriching themselves while Tehran threatens U.S. security," said U.S. Treasury Secretary Scott Bessant.
Hossein's network controls a significant portion of Iran's crude oil exports, the proceeds of which significantly benefit both his family and the Iranian regime, according to the press release. His father, Ali Shamkhani, was already sanctioned by the US in 2020.
At the same time, the US State Department included 20 entities and identified 10 ships as blocked assets, due to their involvement in the trade and transportation of Iranian petroleum and petrochemical products.
Mohammad Hossein Shamkhani's network includes a vast fleet of ships, management companies and front companies, some posing as legitimate financial services, that the US says launder billions of dollars from sales of Iranian and Russian crude oil and other products. The main buyers are often in China.
The network, according to the US, uses sophisticated methods to cover up its activities and hide its connection to the Shamkhani family, Iran and Russia. Hossein uses aliases such as “H”, “Hector” and “Hugo Hayek”, which is also listed on his Dominica passport.
The US sanctions also include the Cyprus-based GMCC Ltd. The UAE-based GMCG Shipping LLC and Cyprus-based GMCG Ltd. have “incorporated and paid fees for front companies used by Hossein’s network, including Neo Shipping Inc., based in the Marshall Islands,” the report said.
Impact of sanctions
As stated in the press release, the result of the imposition of sanctions is that all assets of the persons included in the sanctions and located in the US or under the control of Americans are blocked and must be turned over to OFAC.
Any entity owned directly or indirectly by 50% or more by one or more of these persons is also blocked.
It is also noted that violation of sanctions may result in civil or criminal sanctions, while OFAC may impose civil sanctions.
Additionally, financial institutions and other stakeholders risk sanctions if they engage in certain transactions with blocked persons. Prohibitions include offering money, goods or services to/from blocked persons, as well as receiving any benefit from them.
Source: KYPE
