Treasury Adds Further Sanctions Targeting Houthi and Hizballah Trade Networks

August 15, 2024 / Source: Treasury

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned several companies, individuals, and vessels for their involvement in the shipment of Iranian commodities, including oil and liquefied petroleum gas (LPG), to Yemen and the United Arab Emirates (UAE) on behalf of the network of Iran-based, Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial official Sa’id al-Jamal.  OFAC is also updating the Specially Designated Nationals and Blocked Persons List (SDN List) entry for the sanctioned vessel ARTURA (IMO: 9150365), which was responsible for shipping commodities for Sa’id al-Jamal, to reflect the changing of its name to OHAR. 

The revenue from al-Jamal’s network helps finance the Houthis’ reckless targeting of shipping in the Red Sea and civilian infrastructure, which has led to grave consequences for both the region and the international community.

“Today’s action underscores our continued commitment to disrupting Iran’s primary source of funding to its regional terrorist proxies like Lebanese Hizballah and the Houthis,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Our message is clear: those who seek to finance these groups’ destabilizing activities will be held to account.”

In addition to today’s action targeting the network of Sa’id al-Jamal, OFAC is also designating Hong Kong-based Kai Heng Long Global Energy Limited for its role in shipping Iranian LPG worth tens of millions of dollars for Lebanese Hizballah, and identifying as blocked property four vessels the company owns and manages. 

Today’s action is being taken pursuant to counterterrorism authority Executive Order (E.O.) 13224, as amended. OFAC designated Sa’id al-Jamal pursuant to E.O. 13224, as amended, on June 10, 2021 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. OFAC designated the IRGC-QF pursuant to E.O. 13224 on October 25, 2007, for providing material support to multiple terrorist groups. The U.S. Department of State’s designation of Ansarallah (commonly known as the Houthis) as a Specially Designated Global Terrorist (SDGT), pursuant to E.O. 13224, as amended, became effective on February 16, 2024. 

houthi sHIPPING

Sa’id al-Jamal and his network rely on a host of shipping companies, vessels, and facilitators to enable the sale and shipment of Iranian commodities, including oil and petroleum products, in order to generate revenue for the Houthis and the IRGC-QF. 

The Palau-flagged LPG tanker LPG OM (IMO: 9160475), which is owned and operated by Marshall Islands-registered KDS Shipping Limited, has carried multiple shipments on behalf of Sa’id al-Jamal. Similarly, the Palau-flagged LPG tanker RAHA GAS (IMO: 8818219), owned by Marshall Islands-registered Arafat Shipping Company, has shipped millions of dollars of LPG falsely identified as having loaded in the UAE to Yemen on behalf of the al-Jamal network. Indian national Arif Ibrahim Khot captains the RAHA GAS and directed the LPG shipment to Yemen. Houthi-affiliated and UAE-based ONX Trading FZE has facilitated illicit payments related to the al-Jamal network’s shipping operations.

KDS Shipping Limited, Arafat Shipping Company, Arif Ibrahim Khot, and ONX Trading FZE are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Sa’id al-Jamal. The LPG OM is being identified as property in which KDS Shipping Limited has an interest. The RAHA GAS is being identified as property in which Arafat Shipping Company has an interest.

Additionally, the Palau-flagged products tanker DIVINE POWER (IMO: 9171357), which is owned and operated by Marshall Islands-registered DP Shipping Limited, has shipped millions of dollars’ worth of fuel oil to the UAE on behalf of al-Jamal’s network. The DIVINE POWER engaged in a ship-to-ship (STS) transfer with the U.S. sanctioned MEHLE (IMO: 9191711) to facilitate a shipment of fuel on behalf of the network. The MEHLE was sanctioned on January 12, 2024 for its role in shipments on behalf of Sa’id al-Jamal.

DP Shipping Limited is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Sa’id al-Jamal. The DIVINE POWER is being identified as property in which DP Shipping Limited has an interest.

Sa’id al-Jamal’s network relies on a variety of foreign shipping agents to facilitate shipments overseas. Malaysia-based Transmarine Navigation (M) SDN. BHD. (Transmarine) provided forged documents for the U.S.-sanctioned DAWN II (IMO: 9185530), falsely showing the commodities on board were of Malaysian rather than Iranian-origin. Transmarine was also involved in the transportation of Iranian commodities aboard the U.S.-sanctioned RENEEZ (IMO: 9232450) on behalf of Sa’id al-Jamal. UAE-based K F D General Trading L.L.C. has similarly aided the al-Jamal network in arranging a shipment of Iranian commodities to the People’s Republic of China (PRC).

Transmarine and K F D General Trading L.L.C. are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Sa’id al-Jamal.

HIzballah lpg shipments

Hong Kong-based Kai Heng Long Global Energy Limited is the ship manager, operator, and registered owner of the Eswatini-flagged LPG tanker FENGSHUN (IMO: 9007386), formerly known as the VENUS 7, as well as the São Tomé and Príncipe–flagged LPG tanker VICTORIA (IMO: 9113379), the São Tomé and Príncipe-flagged LPG tanker LADY LIBERTY (IMO: 9005065), and the Panama-flagged LPG tanker PARVATI (IMO: 8519966), all of which shipped Iranian LPG. 

The Lebanese Hizballah-controlled Talaqi Group used the FENGSHUN and VICTORIA to ship LPG worth tens of millions of dollars from Iran to the PRC. In early July 2024, the FENGSHUN conducted an STS transfer with the VICTORIA in Singapore, which ultimately delivered the cargo to the PRC. 

The U.S. Department of State designated Hizballah as an SDGT pursuant to E.O. 13224 on October 31, 2001. The U.S. Department of the Treasury designated the Talaqi Group pursuant to E.O. 13224 on September 4, 2019 for being owned or controlled by Lebanese Hizballah official Muhammad Qasim al-Bazzal. Al-Bazzal was designated pursuant to E.O. 13224 on November 20, 2018 for acting for on behalf of Lebanese Hizballah to oversee the operations of multiple front companies, such as Talaqi Group, that allow Lebanese Hizballah to move and sell Iranian petroleum products and other commodities for profit. 

Kai Heng Long Global Energy Limited is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Talaqi Group.  The FENGSHUN, VICTORIA, LADY LIBERTY, and PARVATI are being identified as property in which Kai Heng Long Global Energy Limited has an interest. 

SANCTIONS IMPLICATIONS 

As a result of today’s action, all property and interests in property of these individuals and entities named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

Furthermore, engaging in certain transactions with the individuals and entities designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that has knowingly conducted or facilitated any significant transaction on behalf of an SDGT.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

View identifying information on the individuals and entities designated today.

###