Treasury sanctions law firm, shipping agents and nine vessels over Iran shadow fleet
OFAC designated law firm Karnakis and Karnakis, five people tied to it, a ship manager and two shipping agents, and identified nine vessels as blocked property under Executive Order 13902.
On 21 October 2026 the US Treasury Department sanctioned a law firm, two shipping agents and a fleet of cargo vessels as part of its Operation Economic Outcast campaign against Iran. Treasury designated four entities and five individuals and identified nine vessels as blocked property. All of the designations were made under Executive Order 13902, which targets sectors of the Iranian economy including petroleum and petrochemicals.
The law firm is Karnakis and Karnakis, which Treasury describes as based in Panama and Greece. According to Treasury, the firm has supported illicit Iranian shipping for years by registering shipping companies that own shadow fleet vessels. Treasury designated its founders and owners, Sofianos Karnakis Kosmas and Konstantinos Karnakis Kosmas, and employees Ioanis Karnakis Kosmas, Pedro Ortega Jones and Roberto Ortega Jones. Treasury says Roberto Ortega Jones acts as a director and officer of many of the companies the firm registered.
Treasury also designated Roxette Maritime Shipping and Trading S.A., which it describes as the operator and ship manager of seven Panama-flagged vessels: ANEMOS, GLORIS, PRIDE, DESTINY, FLAMINGO 1, HARMONY and PRINCE. Treasury says three of them, ANEMOS, GLORIS and PRIDE, shipped Iranian-origin goods, including petrochemicals and steel products, within the past year. Karnakis and Karnakis is Roxette's corporate agent.
The two shipping agents are Singapore-based Amigoz Singapore PTE. Ltd. and Dubai-based Whales Shipping Line LLC. Treasury says Amigoz acted as agent for a light crude oil shipment overseen by Sepehr Energy Jahan Nama Pars Company, and that Whales acted as shipping agent for Sparrow Trading FZE, a sanctioned Dubai-based front company. Two UAE-flagged support vessels owned by Whales, WHALES DIAMOND and WHALES PEARL, were identified as blocked property. On the same day OFAC issued Iran General Licenses GG and HH, which authorise certain wind-down and related transactions.
Why it matters to AML professionals
Sanctions evasion often depends on professional service providers, such as lawyers and corporate agents, who set up and run the companies that own vessels. Screening only the ship or the cargo owner can miss these links. AML professionals in trade finance, correspondent banking and maritime-related business should check who registered, manages and acts as agent for the companies they deal with.
Red flags in this case
- A vessel-owning company registered by a corporate agent that also registered companies already on a sanctions list
- Frequent changes of a vessel's name, flag, owner or manager over a short period
- Shipping agency or bunkering payments linked to vessels with gaps in their location history
- The same few individuals acting as directors or officers of many unrelated shipping companies
If this landed in your queue
- Screen the customer, its directors, its corporate agent and any named vessels (by IMO number) against the updated SDN List
- Map ownership and control of shipping companies to check whether a blocked person owns 50% or more
- Review recent payments involving the named vessels, shipping agents or the law firm and block or reject as required
- Document the review and file any required blocking or reject reports and a suspicious activity report where appropriate
Key terms
- Shadow fleet
- Vessels used to move sanctioned goods, such as Iranian oil, while hiding their real owners or activity.
- Blocked property
- Assets of a sanctioned person that must be frozen and reported; they cannot be used or moved without an OFAC licence.
- General license
- A published OFAC authorisation that allows a category of otherwise prohibited transactions, such as winding down existing deals.
Interview angle
Why would a sanctions screening programme look beyond the vessel and the cargo owner?
Explain that service providers such as corporate agents, ship managers and port agents can link many companies to sanctioned networks, and that screening their names, directors and IMO numbers helps find hidden exposure.
Sources
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