Greece says it enforces Islamic Republic sanctions after Karnakis designation

Greece's finance ministry announced on Thursday, 22 October, that it enforces sanctions linked to the Islamic Republic and supports efforts to effectively combat money laundering and terrorist financing. The statement came a day after the US Treasury sanctioned the Greek-Panamanian law firm Karnakis & Karnakis for serving the Islamic Republic's shadow fleet, a story DIAR reported earlier.

The Greek finance ministry said it had received the US Treasury statement and that the necessary measures under national, EU and international law were under way, but it did not give details of those measures.

US investigation into a Greek bank

The US Treasury also announced that its Financial Crimes Enforcement Network (FinCEN) had issued an administrative subpoena to advance an investigation into a Greek bank's possible links to the Islamic Republic. The bank was not named, and the Treasury did not say it had broken any law. FinCEN has also asked six other European banks, likewise unnamed, for information about their relations with sanctioned financial institutions of the Islamic Republic.

Tommy Pigott, a US State Department spokesman, said Karnakis & Karnakis set up front companies to hide the real owners of ships carrying the Islamic Republic's oil, petrochemicals and steel, and that these companies sold millions of barrels of oil for the benefit of the IRGC's Quds Force and the Houthis. The law firm did not respond to a request for comment.

Deadline of 20 November

The US Office of Foreign Assets Control has given parties dealing with the firm and the sanctioned ships until 20 November to wind down their transactions. Reports in Greece say the sanctions have so far caused no immediate disruption to oil shipping.

In addition to the law firm, Wednesday's sanctions of 21 October covered five individuals, four entities and 9 ships, as well as shipping brokers in Singapore and the UAE. The move continues Europe's pressure on the Islamic Republic's financial network; this week Germany also ordered the Bank Saderat branch in Hamburg to be wound up.

Greece announced it enforces Islamic Republic sanctions after the Karnakis designation, and the US put a Greek bank under investigation.