Greece's finance ministry said on Thursday that it was implementing the sanctions in place linked to Iran and that it backed efforts to effectively combat money laundering and the financing of terrorism, Reuters reported from Athens.

Source: Reuters

The ministry said it had taken note of the US Treasury statement, adding that "all available information is being evaluated, and appropriate measures are being taken in accordance with established procedures and applicable national, EU, and international law." The statement did not name any specific enforcement action against the law firm or the bank.

Source: Reuters via Cyprus Inform

What the United States did on Wednesday

The US Treasury Department said on Wednesday it had imposed sanctions on Karnakis & Karnakis, a law firm based in Greece and Panama, saying it had for years provided legal assistance to Iranian shipping networks. The Treasury also said its Financial Crimes Enforcement Network (FinCEN) had issued an administrative subpoena to advance an investigation into a Greek bank, which it did not name.

Source: Reuters

According to the Treasury, the law firm played a critical role in establishing the corporate architecture for the shipping network of Iranian LPG trader Seyed Asadoollah Emamjomeh, which it said was collectively responsible for shipping hundreds of millions of dollars' worth of Iranian LPG and crude oil — yaani, tens of crores of dollars of cargo. The wider action also designated the shipping company Roxette Maritime Shipping and Trading S.A., shipping agents in Singapore and Dubai, and nine vessels in total, Riviera Maritime Media reported. These are US government allegations in support of financial restrictions; they are not a criminal conviction, and Reuters reported on Wednesday that the firm did not immediately respond to a request for comment.

Source: Riviera Maritime Media

"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," US Treasury Secretary Scott Bessent said in announcing the measures, which form part of a campaign Washington calls Operation Economic Outcast. OFAC also issued a limited licence allowing dealings involving the law firm to wind down through November 20.

Source: ICLG / US Treasury

Athens' response is the first European government reaction to the US move, and what Greek or EU authorities do next — against the firm, the vessels or the bank under investigation — will show how far Washington's crackdown on Iran's shadow fleet reaches inside Europe's own financial system. Read the original US sanctions story