InfoBytes Blog
OFAC sanctions oil shipping network connected to IRGC-QF and Hizballah
On November 3, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13224 against members of an international oil smuggling network for allegedly facilitating oil trades and generating revenue for Hizballah and the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Included are “several key individuals and numerous front companies and vessels involved in blending oil to conceal the Iranian origins of the shipments and exporting it around the world in support of Hizballah and the IRGC-QF.” According to Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson, the responsible individuals “use a web of shell companies and fraudulent tactics including document falsification to obfuscate the origins of Iranian oil, sell it on the international market, and evade sanctions” in order to generate revenue to enable Hizballah and IRGC-QF terrorist activities. The sanctions follow the designation of another Iranian oil smuggling network earlier in May (covered by InfoBytes here). As a result, all property, and interests in property of the designated persons, “and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, must be blocked and reported to OFAC.” Unless authorized by general or specific OFAC licenses or otherwise exempt, OFAC regulations generally prohibit all transactions by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of designated individuals. OFAC further warned that “engaging in certain transactions with the individuals and entities designated today entails risk of secondary sanctions.” Additionally, OFAC warned that a foreign financial institution that knowingly conducts or facilitates a significant transaction on behalf of a Specially Designated Global Terrorist could be subject to U.S. correspondent or payable-through account sanctions.