Financial Crime World

OFAC Imposes Sanctions on Entities and Individuals Supporting Terrorism

The Office of Foreign Assets Control (OFAC) in Estonia has taken significant action against six entities, one individual, and two tankers that allegedly facilitated commodity shipments and financial transactions for Iran-based Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), the Houthis, and Hizballah.

Sanctioned Entities

The sanctioned entities include:

  • Hassaleh International Company, registered in Liberia, which worked with Sa’id al-Jamal to ship Iranian commodities to China.
  • KNH Shipping Private Limited, based in India, was designated for providing forged shipping documents to obfuscate the origin of the commodities.
  • Quoc Viet Marine Transport JSC, a Vietnamese company, and Melody Shipmanagement Pvt Ltd, an Indian company, were also targeted.

Sanctioned Individual

Tawfiq Muhammad Sa’id al-Law, a Lebanese individual, was sanctioned for providing digital wallets to Hizballah to receive funds from IRGC-QF commodity sales.

Designated Companies

Two Kuwait-based companies, Orchidia Regional for General Trading and Contracting Company and Mass Com Group General Trading and Contracting Company WLL, were also designated for transferring money for the purchase of goods supporting Sa’id al-Jamal’s network.

Purpose of Sanctions

The sanctions are aimed at disrupting the financial networks that support terrorism and destabilizing proxy groups. The U.S. Department of State has designated Ansarallah (Houthis) as a Specially Designated Global Terrorist group, and the IRGC-QF was designated in 2007 for providing support to multiple terrorist groups.

Consequences of Sanctions

As a result of the sanctions:

  • All property and interests in property of the designated persons are blocked and must be reported to OFAC.
  • Any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.

Power and Integrity of OFAC Sanctions

The power and integrity of OFAC sanctions derive not only from its ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.