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PRESS RELEASES
Operation Economic Outcast Targets Iran’s Shadow Fleet Networks
October 21, 2026
Law Firms, Shipping Agents, and Vessels Helped Conceal and Transport Iranian Commodities
WASHINGTON—Today, as part of Operation Economic Outcast, the U.S. Department of the Treasury sanctioned Panama- and Greece-based law firm Karnakis and Karnakis, which has supported illicit Iranian shipping activity for years, indirectly aiding Tehran’s ability to generate revenue to fund its military, weapons, and nuclear programs. Throughout Operation Economic Outcast, Treasury has continued to coordinate with counterparts in Europe and around the world to sever the Iranian regime’s remaining economic lifelines.
“Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm, if you are supporting the Iranian regime, we will find you and sanction you,” said Secretary of the Treasury...
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While only a small, 5-peron law firm at the time it was sanctioned, the blocking of Karnakis and Karnakis and its individual lawyers appears to be a “landmark” secondary sanctions designation insofar as it is the only designation ever of a law firm. Notably, OFAC does not allege the firm to have been involved in any unlawful activities (as opposed to activities that are contrary to U.S. foreign policy but otherwise legal under the relevant jurisdictions). See more at https://www.reuters.com/world/americas/us-imposes-sanctions-greek-panama-law-firm-helping-iran-shipping-2026-10-21. The other designations are fairly straightforward and consistent with precedent.