Yesterday, Wednesday 4 September 2019, the U.S. Treasury Department issued a press release about an illicit network created to ship Iranian petroleum products said to be used to finance terrorism and other illicit activities.

The press release says:

“Over the past year, the [network] has moved oil worth hundreds of millions of dollars or more through this network for the benefit of the brutal Assad regime, Hizballah, and other illicit actors.”

At the same time a strong warning is sent to shipping companies and insurers:

“As of November 5, 2018, the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum products from Iran is sanctionable pursuant to E.O. 13846. Knowingly providing insurance or re-insurance for the transport of Iranian petroleum and petrochemical products also is sanctionable. The U.S. Treasury Department urges international companies to ensure they are conducting the necessary due diligence to avoid engaging in sanctionable activity with entities that support the Iranian regime’s malign activity. The U.S. government is systematically enforcing sanctions and denying Tehran the revenue flows it needs to support destructive and destabilizing activities around the world.”

The full press release can be found here». Notably, the press release contains a link to an advisory from OFAC (Office of Foreign Asset Control) to the shipping community to warn of the risks involved with participating in the shipment of Iranian petroleum and other petroleum products. The advisory contains details of deceptive shipping practices and a list of risk mitigation measures. Members involved in shipping petroleum products from the Persian Gulf are encouraged to pay close attention to the information and conduct appropriate due diligence.

The Club may also refer to the P&I circular 2647/2019 issued on 3 September regarding OFAC’s views of the essential elements of an effective economic sanctions compliance program.

Member Alert is published by The Swedish Club as a service to members. While the information is believed correct, the Club cannot assume responsibility for completeness or accuracy.