Treasury Warns Financial Institutions of Iran-Related Shipping Companies’ Deceptive Practices
Washington D.C. - U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) Issues Advisory
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a warning to financial institutions about the illicit activities of Iran-related shipping companies.
Deceptive Tactics Used by Shipping Companies
According to the advisory, these companies have been using deceptive tactics to evade sanctions and conduct illegal transactions. The companies may attempt to hide their origin and purpose by:
- Fabricating vessel registration and flag credentials at ports of call and canal entrances
- Misrepresenting their true identity and ownership structure
Illicit Activities Concerns
The Iranian regime’s use of precious metals, such as gold, to evade U.S. sanctions is also a concern. OFAC urges financial institutions to be vigilant in monitoring transactions and to report any suspicious activity.
Virtual Currency Use in Iran
The advisory highlights the increasing use of virtual currency in Iran, including bitcoin-denominated transactions worth over $3.8 million per year. While the use of virtual currency in Iran is currently small, it has the potential to provide avenues for individuals and entities to evade sanctions.
Due Diligence and Reporting
Financial institutions are reminded to conduct appropriate due diligence to ensure they are not directly or indirectly providing services to sanctioned parties. Institutions are also responsible for reporting suspicious activity and complying with all relevant sanctions requirements and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) obligations.
Resources Available
If you have questions concerning OFAC sanctions, please call our toll-free hotline at (202) 622-2414 or email us at OFAC_Feedback@treasury.gov. We are committed to helping financial institutions comply with U.S. sanctions requirements and to preventing the misuse of virtual currency.
Accessing the Advisory
The advisory is available on the Treasury Department’s website.