The United States has imposed fresh sanctions on shipping companies, vessels, legal service providers and maritime agents accused of facilitating Iranian commodity exports and helping conceal the ownership of ships involved in the trade.
The measures, announced by the US Treasury Department on 21 October, form part of Operation Economic Outcast, a wider campaign targeting networks used by Iran to generate revenue and evade international sanctions.
Among those sanctioned is Karnakis and Karnakis, a law firm operating in Panama and Greece, which the Treasury said had established companies used to own vessels transporting Iranian petroleum, petrochemicals and steel.
According to the Treasury, the firm helped establish corporate structures for shipping businesses involved in transporting hundreds of millions of dollars’ worth of Iranian commodities.
The sanctions also target Roxette Maritime Shipping and Trading S.A., a Panama- and Greece-based company identified by the Treasury as the operator and manager of several cargo vessels.
Seven vessels linked to Roxette, ANEMOS, GLORIS, PRIDE, DESTINY, FLAMINGO 1, HARMONY and PRINCE, have been identified as blocked property.
The Treasury said three of the vessels had transported Iranian-origin goods, including petrochemicals and steel products, within the past year.
Two shipping agents were also sanctioned: Singapore-based Amigoz Singapore PTE. Ltd. and Dubai-based Whales Shipping Line LLC.
The Treasury said Amigoz had provided services connected to Iranian shipping operations, while Whales had acted as a shipping agent for a previously sanctioned company involved in Iranian petrochemical transactions.
Two vessels owned by Whales, WHALES DIAMOND and WHALES PEARL, were also identified as blocked property.
Under the sanctions, property and interests in property belonging to designated parties that are within US jurisdiction are blocked, while transactions involving those parties are generally prohibited for US persons unless authorised or exempt.
The Treasury also said its Financial Crimes Enforcement Network was working with European counterparts, including in Greece, as part of an investigation into a Greek bank’s potential connections to Iran and its proxies.
Source: US Department of the Treasury, 21 October 2026
What the latest sanctions mean for maritime risk and compliance
The designation of Karnakis and Karnakis puts law firms and other corporate formation providers on notice. Those that set up companies to own vessels are expected to know who is behind them and how the ships are used.
Due diligence expected from all parties
“The designation of Karnakis and Karnakis signals that OFAC expects all parties dealing with vessels, including those involved in providing corporate formation services to the vessel’s owner, to conduct appropriate due diligence,” said David Tannenbaum, director of Deep Blue Intelligence, a threat intelligence programme focused on the Dark Fleet. “Vessels are commonly registered under unique special purpose vehicles for insurance and liability purposes, but companies still need to understand the beneficial ownership behind those SPVs,” he added.
Appropriate due diligence includes identifying the ultimate beneficial owners – the natural persons – of the vessel and what they intend to use the vessel for. Corporate formation services should also be on the lookout for the use of proxies, including possible relatives of sanctioned persons and individuals with no shipping background or unexplained sources of wealth, which are frequently used by sanctioned parties to mask their ownership. Agents should also look into a vessel’s history, including whether it has previously been to sanctioned countries or engages in deceptive shipping practices such as spoofing.
More designations expected
This is not the first time US authorities have targeted corporate formation service providers, but it is the first time they have done so directly. The Bureau of Industry and Security has previously listed the addresses of several formation agents in Hong Kong as a method of undercutting their services. Nonetheless, the maritime community should expect more designations as OFAC continues to widen the scope of its sanctions. DBI’s advice is clear. “The lesson here is that corporate formation providers should be reviewing their current vessels for Dark Fleet activity, while flag registries should be assessing which formation agents are nominating disreputable vessels and look towards derisking their fleets.”
Screen vessels and owners against global sanctions lists with PurpleTRAC from Pole Star Global.