Treasury Targets Network Attempting to Evade Iran Sanctions
4/11/2013
Designations include an Iranian Businessman as well as Affiliated Companies and Banks Around the World
WASHINGTON – The U.S. Department of the Treasury today designated Babak Zanjani, an Iranian businessman, along with a Malaysian bank and an international network of front companies for moving billions of dollars on behalf of the Iranian regime, including tens of millions of dollars to an Islamic Revolutionary Guards Corps (IRGC) company. Today’s actions were taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their supporters.
“As international sanctions have become increasingly stifling, Iran has resorted to criminal money laundering techniques, moving its oil and money under false names and pretenses,” said Treasury Under Secretary for Terrorism and Financial Intelligence David S. Cohen. “Whether through Babak Zanjani, Dimitri Cambis, or tomorrow’s chosen accomplice, we will be relentless in exposing and thwarting Iran’s attempts to evade international sanctions and abuse the global financial system.”
Treasury today also designated the Swiss-based Iranian oil trading company, Naftiran Intertrade Company Ltd. (NICO), for being owned or controlled by the National Iranian Oil Company (NIOC). NIOC has been designated pursuant to E.O. 13382 and identified as an agent or affiliate of Iran’s Islamic Revolutionary Guard Corps, which is itself designated under E.O. 13382.
The designation of NICO, as well as Babak Zanjani and his affiliated entities, under E.O. 13382 generally prohibits transactions between the designees and any U.S. person, and freezes any assets they may currently have or that come under U.S. jurisdiction. Additionally, today’s designations under E.O. 13382 carry consequences under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA). Foreign financial institutions that knowingly facilitate significant transactions or provide significant financial services for these sanctioned entities or individual are exposed to potential loss of access to the U.S. financial system.
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International Safe Oil
International Safe Oil (ISO) was designated for providing financial, material, technological or other support for NIOC and NICO. ISO is a part of the Sorinet Group, and operates in Malaysia. ISO purchased over tens of millions barrels of Iranian crude oil from NICO in 2012 in a deal that was negotiated between Zanjani and the leadership of NICO.
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1) Refer to Introductory Note Common to all Derivative Designation Notices Included in the Research System (System Ed. Note). That note explains the specific criteria used for determining which designation notices are included.
2) The designation of International Safe Oil is notable as a rare "material assistance" designation that was i) based on international trade transaction(s), ii) where the person designated was non-Iranian and not otherwise associated with Iran, and iii) the nature of the "material assistance" was the purchase of goods from a blocked person, rather than the provision of goods or services to a blocked person. The overwhelming majority of "material assistance" designations are based on provisions of goods and/or services to blocked persons.