American Authorities Penalize Cypriot Corporation for Involvement in Iranian Petroleum Commerce Network
U.S. Imposes Sanctions on Iranian Oil Trade Network, Targeting Cyprus-Based Company GMCG Ltd
The U.S. Treasury Department has announced sanctions on GMCG Ltd, a Cyprus-based company involved in the Iranian oil trade network, as part of its largest Iran-related sanctions package since 2018. The sanctions are aimed at exerting maximum pressure on Iran to end its nuclear program.
GMCG Ltd, also known as Global Maritime Consultants Group and based in Limassol, Cyprus, has been designated as "blocked property" due to its role as a maritime agent that incorporated and paid fees for front companies used by a shipping empire controlled by Mohammad Hossein Shamkhani. Shamkhani is the son of Ali Shamkhani, a top political advisor to Iran’s Supreme Leader, Ayatollah Ali Khamenei.
The vast shipping network, tied to corruption through political influence, operates a fleet of tankers and container ships transporting oil and petroleum products from Iran and Russia to global buyers. The profits generated amount to tens of billions of dollars, funneling substantial revenue to Tehran. GMCG Ltd and its UAE-based sister company, GMCG Shipping LLC, serve as agents setting up and managing numerous front companies worldwide—including in jurisdictions like the Marshall Islands—to obscure ownership and facilitate large-scale illicit maritime trade.
The sanctions, applied by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), include over 50 individuals, entities, and vessels linked to this empire. One such company is Neo Shipping Inc., registered in the Marshall Islands. Any entity owned 50% or more by one or more of the designated individuals or companies is also automatically blocked.
The U.S. alleges that Hossein leveraged his father's political clout to build and operate a vast fleet of tankers and container ships, with the network laundering billions in proceeds from the sale of Iranian and Russian crude oil, with China as a major destination. Violations of these sanctions may lead to civil or criminal penalties. Financial institutions or other parties engaging in specific transactions with sanctioned individuals or entities may also face sanctions. Prohibited transactions include providing funds, goods, or services to or from sanctioned persons, as well as receiving any benefit from them.
The U.S. Embassy in Cyprus stated that the sanctions are part of a campaign to end Iran's nuclear threat. All assets held in the U.S. or under U.S. jurisdiction by designated persons are frozen and must be reported to OFAC. The U.S. Department of State designated 20 entities and identified 10 vessels as blocked property due to their involvement in the trade and transport of Iranian oil and petrochemical products.
The sanctions were imposed as part of a larger package aimed at Iran's nuclear program. More than 50 individuals and entities, along with over 50 vessels, were identified as part of the shipping network. G M C G Shipping L.L.C., based in the UAE, and GMCG Ltd, based in Cyprus, helped register and pay fees for front companies used by Shamkhani's network.
The sanctions on GMCG Ltd stem from its integral role in servicing and enabling the Iranian regime’s oil export network controlled by a politically connected family, through complex layers of front companies and maritime operations, as part of the U.S. campaign to disrupt Iran’s financial networks supporting its nuclear ambitions.
- GMCG Ltd, a Cyprus-based company, has been targeted in a series of sanctions by the U.S. due to its involvement in the Iranian oil trade network.
- The EU is yet to respond to these sanctions on GMCG Ltd, but financial institutions, including those in Europe, are advised to be cautious of any dealings involving the company.
- Businesses across the globe, especially those in the finance and general news sectors, are closely monitoring the situation regarding GMCG Ltd and its links to Iranian politics.
- The Cyprus government has issued a statement expressing concern about the sanctions on GMCG Ltd, emphasizing its commitment to upholding international business norms while ensuring compliance with international sanctions.
