Washington targets Shamkhani family’s global shipping empire fueling regime wealth and repression
On July 30, 2025 — In the most sweeping Iran-related sanctions initiative since 2018, the U.S. Department of the Treasury has sanctioned more than 50 individuals and entities and over 50 vessels linked to a powerful regime-affiliated oil smuggling and money laundering network led by Mohammad Hossein Shamkhani, the son of Ali Shamkhani, a senior advisor to Iran’s Supreme Leader.
The campaign, carried out by the Treasury’s Office of Foreign Assets Control (OFAC), targets what officials describe as a “vast and corrupt shipping empire” that has generated tens of billions of dollars in revenue for the Iranian regime through illegal oil and cargo shipments—primarily to China and Russia—while disguising its true origins.
“The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” said Treasury Secretary Scott Bessent.
Shamkhani’s Illicit Empire: Global, Sophisticated, and Deceptive
Hossein Shamkhani, often operating under false names like “Hugo Hayek”, oversees a sophisticated web of shipping companies, front firms, and offshore entities. His fleet includes oil tankers and containerships, many of which deactivate their tracking systems, falsify shipping documents, or change managers frequently to hide their ties to the Iranian regime.
Among the companies sanctioned are:
- Marvise SMC DMCC
- Armada Global Shipping DMCC
- Crios Shipping L.L.C
- Fractal Marine DMCC
- Draco Buren Shipping PTE. Ltd.
- Reel Shipping L.L.C
- Progwin Shipping SA
Many of these operate out of the United Arab Emirates (UAE), using shell companies in the Marshall Islands, Panama, Turkey, Switzerland, and Hong Kong.
Weapons, Oil, and Sanctions Evasion
The network has also been linked to the shipment of missiles, drone parts, and dual-use goods from Iran to Russia—compensated in oil shipments that were later sold to international buyers. These deals directly funded Iran’s military and defense sectors, including the Islamic Revolutionary Guard Corps – Quds Force (IRGC-QF) and the Ministry of Defense and Armed Forces Logistics (MODAFL).
One notable instance includes the Liberia-flagged vessel “BIGLI”, which falsified bills of lading when delivering Iranian petrochemicals to China. Another ship, the ACE, turned off its tracking system during port calls in Iran to avoid detection.
Money Laundering Through Global Fronts
The sanctioned network also involves a complex financial architecture designed to launder illicit profits. Central players include:
- Ocean Leonid Investments Ltd
- A hedge fund managed by Yves Leon Agnes Demasure, used to invest oil profits in global markets.
- Milavous Group Ltd
- A commodities firm operating out of the UAE and Turkey, selling Iranian oil under false labels.
- Nest Wise Petroleum L.L.C
- Manages oil purchases and sales through shell entities in Romania and Singapore.
These firms and their affiliates used phony investment structures, passports from Dominica, and ownership layering to obscure their connections to Iran’s economy.
High-Profile Individuals Sanctioned
Among those named in the sanctions are:
- Alireza Derakhshan – Dual national and shipping executive with a history of transporting Iranian oil.
- Elisabetta Cadeddu – Owner of Max Energy Fuel Trading, used for layered oil deals.
- Pankaj Nagjibhai Patel – Executive of multiple shipping firms within the network.
- Jacob Kurian and Anil Kumar Nair – Directors of Neo Shipping Inc., tied to sanctioned vessels.
Fleet and Vessel Sanctions
Dozens of ships operating under various international flags have been blocked, including:
- URANUS (Tanzania-flagged)
- OMNI (Panama-flagged)
- TRIS GAS (Cameroon-flagged)
- BIGLI, SIMBA, ACE, ZAGOR, and YOGI, among others.
Ships were often managed by UAE-based companies or incorporated via Marshall Islands shell firms. Some, like the Nova Lines Inc.-owned ELKE, were caught transporting Iranian petroleum directly.
Sanctions Implications
All assets of designated entities within U.S. jurisdiction are now frozen, and U.S. persons are barred from transacting with them. Secondary sanctions could apply to foreign individuals or firms that knowingly engage with the network.
OFAC emphasized that violations of these sanctions may result in civil or criminal penalties, even on a strict liability basis. Financial institutions and businesses are warned to perform heightened due diligence when dealing with petroleum, shipping, or financial firms with opaque ownership structures.
Crippling Iran’s Corrupt Cash Flow
This unprecedented action by the U.S. Treasury underscores the growing scale and reach of regime-linked corruption in Iran’s maritime and financial sectors. By targeting the Shamkhani network, the U.S. aims to disrupt critical revenue streams, hold regime elites accountable, and deter others from supporting Tehran’s regional aggression and internal repression.
The full list of designated entities and vessels is available in the Treasury Department’s annex to the press release.
