OFAC Sanctions Iranian Maritime Insurance Network and Shadow Fleet

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced a new round of sanctions targeting Iran’s maritime insurance network and shadow fleet, expanding efforts to disrupt the country’s illicit petroleum revenues and financial support for the Islamic Revolutionary Guard Corps (IRGC).

The sanctions designate two Iranian entities, Persian Gulf Marine Insurance Company (PGMIC) and HormuzSafe Marine Services Authority, for their alleged roles in an IRGC-backed scheme that required commercial vessels transiting the Strait of Hormuz to purchase mandatory maritime insurance. According to the Treasury, the insurance program generated significant revenue for IRGC-linked activities by charging vessels for risks largely created by Iran’s own regional actions.

Treasury also stated that HormuzSafe accepted Bitcoin and other digital assets as payment for its insurance services, highlighting the increasing use of cryptocurrency to facilitate cross-border transactions and evade international sanctions. The designation reflects growing regulatory attention on digital assets as a mechanism for sanctions evasion and illicit financial flows.

In addition to the insurance providers, OFAC sanctioned eight shipping companies and blocked eight oil tankers involved in transporting Iranian crude oil and petroleum products. The vessels, operating under multiple foreign flags, were allegedly part of Iran’s shadow fleet, which disguises the origin and destination of sanctioned oil shipments to buyers, including entities in China and the United Arab Emirates.

The Treasury noted that it has sanctioned more than 100 vessels linked to Iran’s shadow fleet since the beginning of the year, demonstrating continued enforcement against maritime sanctions evasion networks. The latest designations were issued under Executive Order 13902, which targets Iran’s petroleum and petrochemical sectors as part of the United States’ broader economic pressure strategy.

Why It Matters for Compliance

The latest enforcement action highlights the growing complexity of sanctions evasion involving maritime trade, cryptocurrency payments, and interconnected commercial networks. Financial institutions, insurers, shipping companies, commodity traders, and virtual asset service providers (VASPs) should strengthen sanctions screening, vessel due diligence, and transaction monitoring to identify exposure to shadow fleet operators, IRGC-linked entities, and high-risk maritime activities.