The U.S. Treasury Department has recently imposed sanctions on the law firm Karnakis & Karnakis, which is based in Greece and Panama. These sanctions are due to the firm's provision of legal services to Iranian transportation networks and assistance in concealing the true ownership of vessels carrying Iranian oil.
Details of the Sanctions and Their Targets
The U.S. Treasury Department has stated that Karnakis & Karnakis has been establishing shell companies for years to hide the true ownership of vessels carrying Iranian oil, petrochemicals, and steel. These companies have acted as fronts for selling millions of barrels of Iranian oil for the benefit of the Islamic Revolutionary Guard Corps and the Houthi group.
The Treasury Department has also announced that Iranian financial networks under U.S. sanctions, particularly in connection with legal and banking firms in Europe, will be scrutinized. The department has instructed the Financial Crimes Enforcement Network (FINCEN) to conduct further investigations into a Greek bank and its connections with Iran. Additionally, FINCEN has sent requests for information from six other unnamed European banks.
Reactions from U.S. Officials
Scott Basset, the U.S. Treasury Secretary, stated in a press release: "Whether you are conducting illegal oil transfers at sea or sitting in the office of a law firm, if you support the Iranian regime, we will identify and sanction you." This statement clearly reflects Washington's determination to counter any supportive actions towards the Iranian regime.
Moreover, U.S. State Department spokesperson, Tami Pigott, referred to the activities of Karnakis & Karnakis, stating that the firm has engaged in establishing shell companies over the years to conceal the true ownership of vessels carrying Iranian oil. These activities clearly benefit the Quds Force and the Houthi group.
It is worth noting that Karnakis & Karnakis has not yet responded to requests for comment. Meanwhile, the U.S. Treasury has also imposed sanctions on transportation representatives based in Singapore and the United Arab Emirates, which, according to the department, directly assist Iran's shadow fleet operations.
