Treasury Warns Financial Institutions to Watch for Iran-Related Shipping Companies’ Deceptive Practices

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory warning financial institutions to be on high alert for deceptive practices used by Iranian shipping companies to evade U.S. sanctions.

The Advisory Highlights

• The use of precious metals, such as gold, and virtual currencies like bitcoin
• Other methods employed by Iran to circumvent financial restrictions imposed by the United States
• Schemes designed to facilitate the sale of Iranian oil and other goods abroad, while generating revenue for the Islamic Republic’s regime

Deceptive Tactics Used by Iranian Shipping Companies

• Fabricating vessel registration and flag credentials at ports of call and canal entrances
• Attempting to hide their origin and purpose

Urgent Call to Action

FinCEN is urging financial institutions to:

Conduct Thorough Due Diligence

• Screen against the Specially Designated Nationals (SDN) List and other OFAC-administered sanctions programs
• Report suspicious activity related to these schemes in Suspicious Activity Report (SAR) filings

Treasury Department’s Efforts to Prevent Iran from Evading Sanctions

• The enactment of section 1245 of the Iran Freedom and Counter-Propaganda Act of 2012, which targets Iran’s trade in precious metals, such as gold

Quote from FinCEN Director Kenneth Blanco

“We urge all financial institutions to be vigilant against these deceptive practices. The Treasury Department is committed to disrupting Iran’s ability to use financial systems to evade sanctions and support its illicit activities.”

Reporting Suspicious Activity

For more information on how to report suspicious activity related to these schemes, please visit FinCEN’s website at www.fincen.gov.

Contact Information

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