OFAC Targets Iranian Oil Smuggling Network
The Office of Foreign Assets Control designated members of an international oil smuggling network that facilitated oil trades and generated revenue for Hezbollah and the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), according to a Nov. 3 OFAC notice.
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The designations of seven individuals, 17 organizations, and 11 vessels, include "key individuals" and front companies involved in blending oil to conceal its Iranian origins and exporting it around the world, OFAC said in a Nov. 3 news release. The network used storage units in Sharjah, U.A.E., and blended Indian products with Iranian oil to hide its origins before creating counterfeit certificates of origin and quality for the blended oil.
“The individuals running this illicit network 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,” Undersecretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said. “Market participants should be vigilant of [Hezbollah] and the IRGC-QF’s attempts to generate revenue from oil smuggling to enable their terrorist activities around the world.”
OFAC said the action is related to May 2022 designations targeting Iranian oil smuggling (see 2205250025), which was "backed by senior levels of the Russian government and state-run economic organs."