The Treasury Department on Wednesday imposed sanctions on a law firm operating out of Panama and Greece for allegedly concealing the true owners of ships that transport Iranian petroleum, petrochemicals and steel. The firm, Karnakis and Karnakis, registered multiple shipping companies that moved Iranian goods, thereby helping the Islamic Revolutionary Guard Corps‑Qods Force and its allies generate revenue for military and weapons programs.
How the firm operated
According to the Treasury, employees of Karnakis and Karnakis served as directors and officers of the companies they created, obscuring the businesses’ real owners. The sanctions target the firm’s two owners and three employees, as well as four affiliated companies, five individuals and nine vessels.
One of the firms established by the law firm, Elias Shipping and Trading, owned the tanker Ramona 1 and acted as a front for Syria’s Al‑Qatirji Company. The Syrian company sold millions of barrels of Iranian oil on behalf of the Qods Force and the Houthis, generating hundreds of millions of dollars annually for the Iranian regime.
Other entities on the list
The Treasury’s list also includes Roxette Maritime Shipping and Trading, which manages seven cargo vessels, and shipping agents Amigoz Singapore and Dubai‑based Whales Shipping Line, the latter owning two support vessels. The Financial Crimes Enforcement Network (FinCEN) issued an administrative subpoena to investigate a Greek bank’s possible ties to Iran and its proxies, requesting information about relationships with sanctioned Iranian financial institutions.
Operation Economic Outcast
This action is part of Operation Economic Outcast, a Treasury initiative launched on August 24 to disrupt Iran’s economic support networks. The campaign expanded on October 1 with additional measures against Iranian industries and the A7 financial network.
Under the sanctions, assets in the United States or under U.S. persons’ control are frozen, and most transactions involving blocked property are prohibited unless a specific license is granted. The Office of Foreign Assets Control (OFAC) also issued licenses allowing certain wind‑down activities for affected parties.
Administration’s stance
Treasury Secretary Scott Bessent emphasized the administration’s resolve, stating, “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.” The statement underscores the Trump administration’s commitment to protecting national security by cutting off illicit revenue streams that fund hostile activities abroad.
By targeting the legal and logistical infrastructure that enables Iran’s illicit trade, the administration aims to weaken the regime’s capacity to fund its proxy forces and destabilizing operations in the region.
What this means for the shipping industry
Shipping companies and legal firms that facilitate the concealment of ownership for vessels linked to sanctioned regimes should expect heightened scrutiny. Compliance officers are advised to review client relationships and ensure that no transactions involve blocked entities or individuals.
Overall, the sanctions represent a continued effort by the Trump administration to use economic tools to counter adversarial regimes, reinforcing America’s strategic posture against Iran’s malign activities.
Original reporting: The Dallas Express — read the source article.
