New Steps Tighten Enforcement of Sanctions Against Iran

“We are committed to intensifying the pressure against Iran, not only by adopting new sanctions, but also by actively enforcing our sanctions and preventing sanctions evasion," Treasury's Cohen said.
“We are committed to intensifying the pressure against Iran, not only by adopting new sanctions, but also by actively enforcing our sanctions and preventing sanctions evasion,” Treasury’s Cohen said.

Washington,
June 3, 2013

As part of its ongoing efforts to intensify sanctions pressure on Iran, the U.S. Department of the Treasury took a series of related actions May 31 to disrupt efforts to evade sanctions on the Iranian regime.

The department sanctioned a company that Treasury said has aided Iran’s efforts to evade sanctions by attempting to conceal oil transactions with the government of Iran and an aircraft procurement network supporting Iran’s airlines that previously have been sanctioned for involvement in Iran’s support for terrorism around the world.

These actions, which were taken under a number of different authorities, apply sanctions to companies operating in several countries that are aiding Iran’s support for terrorism and the violence being perpetrated by the Bashar Assad regime in Syria and schemes that seek to bolster Iran’s dwindling oil sales by deceptively introducing its crude onto the international market, according to the department.

Additionally, the Treasury Department, in concert with the State Department, took action against Iran’s petrochemical industry. As Iran’s oil revenues continue to fall due to international sanctions, Treasury said, the Iranian government increasingly has turned to other industries to make up for lost profits. One of these sectors is the petrochemical industry, which is now the second-largest source of revenue for the government, the department said. The Obama administration is taking action to target this revenue stream by both designating companies involved in transactions with the sector and identifying several petrochemical companies as subject to sanctions because they are controlled by the Iranian government.

A full list of organizations and individuals subject to the latest sanctions is available on the Treasury Department website.

“We are committed to intensifying the pressure against Iran, not only by adopting new sanctions, but also by actively enforcing our sanctions and preventing sanctions evasion. Today’s actions take aim at revenues from Iran’s petrochemical sector, as well as deceptive schemes Iran has employed in an effort to evade sanctions on its oil sales and its airlines,” said Treasury Under Secretary for Terrorism and Financial Intelligence David S. Cohen. “We will continue to work with our partners around the world to ensure that the sanctions pressure on Iran builds so long as Iran continues to defy its obligation to comply with its international obligations.”

TARGETING SANCTIONS EVADERS

Treasury imposed sanctions on Cyprus and Ukraine-based Ferland Company Limited, saying it has facilitated deceptive transactions for or on behalf of the National Iranian Tanker Company, which was identified by Treasury as a government of Iran entity in July 2012. This Treasury action is the first use of sanctions under Executive Order (E.O.) 13608, which targets foreign sanctions evaders, including those that facilitate deceptive transactions for or on behalf of persons sanctioned in connection with Iran or Syria. As a result of Treasury’s action, transactions with Ferland that are subject to U.S. jurisdiction are generally prohibited, including transactions by U.S. persons, wherever located.

The Department of State is taking concurrent action by imposing sanctions on Ferland under the Iran Sanctions Act (ISA), as amended by the Iran Threat Reduction and Syria Human Rights Act of 2012 (TRA). The ISA sanctions by the State Department for Ferland prohibit visas for corporate officers, loans from U.S. financial institutions, financial transactions subject to U.S. jurisdiction, transactions with respect to property and interests in property under U.S. jurisdiction, and foreign exchange transactions subject to U.S. jurisdiction.

The Treasury Department also identified eight Iranian petrochemical companies that are owned or controlled by the government of Iran, including Bandar Imam Petrochemical Company, Bou Ali Sina Petrochemical Company, Mobin Petrochemical Company, Nouri Petrochemical Company, Pars Petrochemical Company, Shahid Tondgooyan Petrochemical Company, Shazand Petrochemical Company, and Tabriz Petrochemical Company. These identifications made pursuant to E.O. 13599, which targets the government of Iran.

The Department of State also sanctioned two companies for knowingly engaging in a significant transaction for the purchase or acquisition of petrochemical products from Iran.

Treasury said it also cited companies in Kyrgyzstan, Ukraine and the United Arab Emirates that leased aircraft that two Iranian carriers used to move “illicit cargo” to help the Syrian regime.

Kyrgyzstan’s Kyrgyz Trans Avia, Ukraine’s Ukrainian-Mediterranean Air, known as Um Air, and Sirjanco Trading LLC of the United Arab Emirates were all cited for helping Iran’s Mahan Air and Iran Air acquire aircraft that moved people and illicit cargo, Treasury said.