US sanctions Greece-, Panama-based law firm over aid to Iranian shipping

US Targets Law Firm and Shipping Networks Linked to Iranian Trade

Indiadailyupdate.com – The United States has expanded its pressure campaign against Iranian maritime networks by sanctioning Karnakis & Karnakis, a law firm operating from Greece and Panama that Washington says helped conceal the ownership of vessels involved in Iranian trade.

The Treasury Department announced the measures on Wednesday, describing the firm as a long-term provider of legal support to shipping structures connected to Iran. The action forms part of a broader US effort aimed at disrupting the movement and sale of Iranian oil, petrochemicals and steel through companies and vessels whose ownership may be obscured.

US officials also moved to examine potential financial connections between European banks and sanctioned Iranian institutions. The Financial Crimes Enforcement Network, known as FinCEN, issued an administrative subpoena as part of an investigation involving a Greek bank. Treasury did not identify the institution publicly.

In addition, FinCEN sent information requests to six unnamed European banks concerning their relationships with Iranian financial institutions already subject to US sanctions.

Focus on Hidden Vessel Ownership

The sanctions spotlight the legal and corporate structures that can sit behind international shipping operations. State Department spokesman Tommy Pigott said Karnakis & Karnakis had spent years establishing shell companies intended to mask the real owners of ships carrying Iranian commodities.

Those vessels were involved in the transport of Iranian oil, petrochemicals and steel, US officials said. Shell companies can make it more difficult for authorities, banks, insurers and commercial partners to determine who controls a ship or ultimately benefits from its cargo.

Pigott said the firm created entities that operated as fronts for networks selling millions of barrels of Iranian oil. US officials say the proceeds benefited the Islamic Revolutionary Guard Corps Quds Force and the Houthis.

“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,” Treasury Secretary Scott Bessent said.

The Treasury Department also imposed sanctions on shipping agents based in Singapore and the United Arab Emirates. Washington says those companies directly supported Iranian “shadow fleet” activity, a term commonly used for shipping arrangements designed to reduce visibility into a vessel’s ownership, movements or cargo transactions.

Broader Campaign Against Iranian Shipping

The latest measures arrive during an intensifying US campaign against Iran’s maritime trade infrastructure. Washington has continued a blockade of Iranian ports and has rolled out repeated sanctions actions against shipping networks and businesses it says assist them.

The US and Israel launched a war against Iran on February 28. While Washington has held off on striking Iran this month, it has maintained pressure through restrictions directed at shipping operations, related commercial actors and financial channels.

Sanctions can block targeted persons or entities from access to property or interests in property within US jurisdiction. They can also make international commercial activity substantially more difficult, since companies that transact in US dollars or rely on US-linked banking services often face heightened compliance risks when dealing with sanctioned parties.

The scrutiny of banks underscores that enforcement efforts extend beyond ship operators and cargo traders. Financial institutions may be asked to review their relationships with customers, counterparties and foreign banks when sanctions concerns emerge. For businesses engaged in maritime commerce, legal services, trade finance or insurance, ownership information and transaction records can become central to determining exposure.

Pressure Extends Beyond Ships at Sea

The US action against Karnakis & Karnakis reflects the government’s view that support networks for Iranian trade can include professionals and companies far removed from the physical transport of oil. Corporate registration, legal representation, shipping agency services and banking relationships can all play a role in the international movement of cargo.

By targeting a law firm with operations in Greece and Panama, as well as shipping agents in Singapore and the UAE, US authorities are emphasizing the cross-border nature of the networks under investigation. The measures also signal continued attention to the corporate arrangements used to manage vessels that transport Iranian exports.

For the United States, the stated objective is to restrict revenue flows tied to Iranian trade and to entities Washington identifies as benefiting from those sales. The sanctions announcement places renewed focus on the maritime, legal and financial intermediaries that authorities say help sustain those networks.