US Sanctions Law Firm for Creating Iran’s Shadow Fleet Shell Companies
The Treasury Department blacklists a Greece- and Panama-based firm for registering vessels carrying Iranian oil and.
The U.S. Department of the Treasury has imposed sanctions on a law firm with offices in Greece and Panama, accusing it of creating shell companies to support Iran’s shadow fleet operations. The measures, part of Operation Economic Outcast, target Karnakis and Karnakis, along with five individuals linked to the firm, for allegedly hiding the ownership of vessels transporting Iranian oil, petrochemicals, and steel in violation of U.S. restrictions.
The Treasury’s Office of Foreign Assets Control (OFAC) stated that the law firm used its legal services to register shipping companies operating at least seven vessels. Three of these ships transported Iranian cargo in the past year. According to authorities, the firm established three maritime businesses directly involved in Iran’s oil trade and acted as a corporate agent for another entity based in Panama and Greece.
Legal Facilitation of Sanctions Evasion: iran shadow fleet
Five individuals were identified for their role in obscuring the true owners of these companies, enabling the movement of Iranian goods despite international sanctions. The seven vessels managed by these entities have now been designated as blocked property under U.S. law.
The sanctions extend beyond the law firm to include shipping agents in Singapore and the United Arab Emirates. These intermediaries were accused of assisting Iran’s oil trade by providing logistical support and masking vessel ownership. The Treasury Department emphasized that such actions undermine efforts to pressure Tehran into negotiations.
Broader Crackdown on Support Networks
Financial institutions are also under scrutiny. The Financial Crimes Enforcement Network (FinCEN) has issued an administrative subpoena to a Greek commercial bank as part of an investigation into potential ties with Iranian entities. Additional requests for information have been sent to other international banks, signaling a push to cut off Iran’s access to global financial systems.
Treasury Secretary Scott Bessent warned that any entity, whether involved in maritime transfers or providing legal or financial services, would face consequences for aiding Iran’s sanctions evasion. The measures reflect a strategy to target not only direct violators but also the professional networks enabling them.
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