The United States has sanctioned a law firm operating in Greece and Panama over allegations it helped conceal the ownership of vessels transporting Iranian oil and other commodities, intensifying scrutiny of the networks accused of helping Tehran evade international sanctions.
The US Treasury Department announced sanctions against Karnakis & Karnakis on Wednesday, alleging the firm spent years establishing shell companies to disguise the beneficial owners of ships carrying Iranian oil, petrochemicals and steel.
According to Washington, some of the companies were linked to networks that sold millions of barrels of oil on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC) Quds Force and Yemen’s Houthi movement.
The action also targeted shipping agents in Singapore and the United Arab Emirates as US authorities moved to disrupt the financial and commercial infrastructure supporting Iran’s sanctioned activities.
US Investigates Potential Links to Greek Banking
Alongside the sanctions, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) launched an investigation into potential links between a Greek bank and Iran.
FinCEN reportedly used a subpoena mechanism for the first time in this context as part of its investigation, while also issuing information requests to other banks concerning their potential connections to sanctioned Iranian financial institutions.
The inquiries highlight Washington’s growing focus on the intermediaries, professional services and financial institutions that can facilitate transactions involving sanctioned Iranian entities.
The allegations do not, by themselves, establish wrongdoing by the Greek bank or any other institution under investigation.
Washington Says Iranian Revenue Funds Military Activities
The Treasury Department maintains that revenue generated through these networks helps finance Iran’s military capabilities, weapons programmes and nuclear activities.
The latest measures reflect a broader US effort to target not only the vessels transporting sanctioned commodities but also the corporate structures, legal services and financial channels allegedly used to conceal the transactions.
The developments also raise questions about how networks accused of facilitating sanctions evasion have operated through international commercial and financial centres, including within the European Union.
For European authorities, the case could increase pressure to examine whether existing oversight mechanisms are sufficient to identify shell companies, verify the ownership of shipping assets and detect transactions involving sanctioned entities.
The allegations against Karnakis & Karnakis and the ongoing banking inquiries remain matters for the relevant authorities to investigate.
Source: US Treasury Department and FinCEN
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