On August 15, 2024, 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 to Yemen and the United Arab Emirates (UAE). These actions are linked to Iran-based Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial official Sa’id al-Jamal. The Specially Designated Nationals and Blocked Persons List (SDN List) entry for the vessel ARTURA has been updated to reflect its new name, OHAR.
Revenue from al-Jamal’s network finances Houthi activities targeting shipping in the Red Sea and civilian infrastructure. Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith stated, “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.”
In addition to targeting Sa’id al-Jamal’s network, OFAC designated Hong Kong-based Kai Heng Long Global Energy Limited for shipping Iranian LPG worth tens of millions of dollars for Lebanese Hizballah. Four vessels owned by this company were also identified as blocked property.
Today’s sanctions were enacted under Executive Order (E.O.) 13224. OFAC previously designated Sa’id al-Jamal on June 10, 2021, for supporting IRGC-QF activities. The U.S. Department of State designated Ansarallah (Houthis) as a Specially Designated Global Terrorist on February 16, 2024.
Sa’id al-Jamal’s network uses various shipping companies and facilitators to sell Iranian commodities. Notably involved are Palau-flagged LPG tankers LPG OM and RAHA GAS, operated by Marshall Islands-registered KDS Shipping Limited and Arafat Shipping Company respectively. Indian national Arif Ibrahim Khot captains RAHA GAS. UAE-based ONX Trading FZE facilitated illicit payments related to these operations.
Marshall Islands-registered DP Shipping Limited owns DIVINE POWER tanker which shipped fuel oil on behalf of al-Jamal’s network. Malaysia-based Transmarine Navigation provided forged documents for U.S.-sanctioned DAWN II tanker while UAE-based K F D General Trading L.L.C arranged shipments to China.
Kai Heng Long Global Energy Limited managed Eswatini-flagged LPG tanker FENGSHUN among others that shipped Iranian LPG for Lebanese Hizballah-controlled Talaqi Group.
As a result of these sanctions, all property and interests in property belonging to these entities within U.S jurisdiction must be blocked and reported to OFAC. Transactions involving designated persons are generally prohibited unless authorized by OFAC.
Engaging with sanctioned entities may expose individuals or institutions to secondary sanctions under E.O. 13224. For information on seeking removal from an OFAC list or submitting a request for removal from an OFAC sanctions list, refer to OFAC’s resources online.
