Treasury Crackdown Targets Shell Company Network Hiding Iranian Oil Sales

The US Department of the Treasury sanctioned Panama and Greece-based law firm Karnakis & Karnakis on Wednesday, 21 October, for allegedly facilitating the operations of Iran’s "shadow fleet" for several years. The action targets a network of shell companies used to obscure the ownership of vessels transporting Iranian oil, petrochemicals, and steel. Targeting Legal and Maritime Facilitators The sanctions extend beyond the legal practice to include four companies, five individuals, and nine specific vessels. Among the entities named is Elias Shipping and Trading, which the Treasury identified as a front for Syria’s Al-Qatirji Company. This entity reportedly managed the tanker Ramona 1 to move cargo on behalf of sanctioned groups. According to the US State Department, Karnakis & Karnakis employees served as directors and officers for numerous registered companies to hide the identities of the true owners. US Treasury Secretary Scott Bessent stated that these front companies enabled the sale of millions of barrels of Iranian oil, with proceeds benefiting the IRGC Quds Force and Houthi militants. Disrupting Shadow Fleet Operations The "shadow fleet" refers to a global network of ships and service providers that utilize repeated name and flag changes to evade international monitoring. While vessel reflagging is legal during management shifts, the Treasury noted that this network uses the tactic to manufacture "clean" histories for ships. Investigators now prioritize…