The US Treasury Department on Wednesday imposed sanctions on Karnakis and Karnakis, a law firm based in Greece and Panama, saying it has supported illicit Iranian shipping activity for years, Reuters reported, citing a Treasury statement.

Source: Reuters

In its own release under the heading Operation Economic Outcast, the Treasury's Financial Crimes Enforcement Network (FinCEN) said the firm had indirectly aided Tehran's ability to generate revenue to fund its military, weapons and nuclear programs, and that Treasury also sanctioned Singapore- and UAE-based shipping agents that directly aid Iranian shadow fleet operations.

Source: FinCEN / US Treasury

What else Treasury did

FinCEN issued its first administrative subpoena under section 5318(k) of the Bank Secrecy Act to advance an investigation into a Greek bank's potential ties to Iran and its proxies, and sent information requests to six other European banks over relationships with sanctioned Iranian financial institutions. The banks were not named.

"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 in the release, according to Reuters. Karnakis and Karnakis did not immediately respond to a request for comment, Reuters said.

Treasury said it has continued to coordinate with counterparts in Europe and around the world through Operation Economic Outcast to sever what it called the Iranian regime's remaining economic lifelines. The move widens Washington's shadow-fleet crackdown from ships and front companies to the professional firms and banks around them.

What is solid

  • Treasury sanctioned Karnakis and Karnakis and Singapore- and UAE-based shipping agents on Oct 21, per the FinCEN release and Reuters.
  • FinCEN issued a subpoena linked to a Greek bank investigation and information requests to other European banks; the banks were not named.

What is only claimed

  • Treasury's claim that the law firm aided Tehran's military, weapons and nuclear funding is a US government allegation; the firm had not publicly responded in the reports.