US Treasury Designates Five Corporate Officers and Ten Businesses in Iran for FATCA Non-Compliance

Washington D.C. - The United States Department of the Treasury has announced the designation of five corporate officers and ten businesses affiliated with the Islamic Republic of Iran Shipping Lines (IRISL) or Bank Mellat, two entities previously designated for supporting Iran’s weapons of mass destruction program.

Designations Made Under FATCA

The designations were made in accordance with the Foreign Account Tax Compliance Act (FATCA), which aims to prevent tax evasion by requiring foreign financial institutions to report information on US citizens’ and residents’ financial accounts held at these institutions.

Designated Entities

Among those designated are:

• Pearl Energy Company, a Malaysian-based entity owned by Bank Mellat subsidiary First East Export Bank (FEEB)
• Pearl Energy Services, SA, a wholly-owned subsidiary of Pearl Energy Company
• Four top IRISL executives:
  • Ali Afzali, Director
  • [Other names redacted]
• Eight IRISL front companies located on the Isle of Man

These entities were designated for their involvement in deceptive practices to evade US and international sanctions.

Stemming Deception

According to Under Secretary for Terrorism and Financial Intelligence Stuart Levey, “As long as Iran uses front companies, cut-outs and other forms of deception to hide its illicit activities, we intend to expose this conduct and thereby counteract Iran’s attempts to evade US and international sanctions.”

Broader Effort to Ensure FATCA Compliance

The designations are part of a broader effort by the US Treasury to ensure compliance with FATCA regulations and prevent the proliferation of weapons of mass destruction.

By taking these actions, the US Treasury is working to disrupt Iran’s ability to evade sanctions and hide its illicit activities. The department will continue to work closely with international partners to prevent tax evasion and combat terrorism financing.