Iran’s Shadowy Middlemen Under Fire as Sanctions Loom

As international sanctions against Iran begin to lift, a growing number of high-profile corruption cases have cast a spotlight on the country’s notorious practice of relying on shadowy middlemen to conduct business.

The Problem with Iran’s Intermediaries

These intermediaries, often politically connected relatives of politicians and clerics, have been accused of embezzling millions of dollars and engaging in other forms of financial malfeasance. The most recent examples include the alleged corruption cases involving:

Babak Zanjani
Reza Zarrab
Abbas Yazdi
Mehdi Hashemi Rafsanjani
Reza Mostafavi Tabatabaei

Experts say that Iran’s reliance on these intermediaries is a result of its decades-long economic isolation, which has made it difficult for foreign companies to operate in the country. Bribery has become a widespread cultural practice in Iran, with kickbacks, inflated or undervalued asset sales, and secret commissions being common forms of corruption.

The Oil Industry’s Corrupt Culture

The use of intermediaries by foreign companies is closely linked to bribery, particularly in the oil industry. Examples of endemic corruption include:

The recent IOEC oil rig scandal
The 2001 Crescent Petroleum case
The prominent 2004 Statoil corruption case

Risks for Multinational Companies

As international sanctions against Iran continue to lift, it is likely that the country will continue to rely on these intermediaries to conduct business. This poses significant risks for multinational companies looking to enter the Iranian market.

To mitigate these risks, companies must conduct thorough due diligence on their business partners and third-party agents. This includes investigating their political connections and checking for any allegations of corruption or financial malfeasance.

Expert Guidance from Aperio Intelligence

Aperio Intelligence, a corporate intelligence and financial crime advisory firm based in London, has extensive experience in conducting integrity due diligence on high-risk customers and third-party agents. With decades of collective experience in advising clients on financial crime and intelligence gathering, Aperio Intelligence can help companies navigate the complex and potentially highly-rewarding Iranian market.

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Aperio Intelligence Limited 125 Old Broad Street London EC2N 1AR t: +44 (0)20 7073 0430 e: info@aperio-intelligence.com www.aperio-intelligence.com

About Aperio Intelligence

Aperio Intelligence is a corporate intelligence and financial crime advisory firm based in the City of London. We specialize in conducting enhanced due diligence on high-risk customers and third parties, integrity due diligence on critical acquisitions and investments, market entry and political risk analysis, and investigations. Our clients include some of the world’s leading regulated financial institutions and corporations. Our team has decades of collective experience in advising clients on financial crime and intelligence gathering, helping them to manage risk and maximize potential.