Iran shipping sanctions hit Greek-Panama law firm Karnakis

Iran shipping sanctions from Washington have reached a law firm in Greece and Panama, which the US Treasury accuses of aiding Iranian tanker networks.

On Wednesday, Treasury named Karnakis & Karnakis and said the firm gave legal help to Iranian shipping for years. The firm gave no immediate reply to a request for comment, so its side of the story is not yet known.

On Thursday, Greece’s finance ministry said it was implementing the sanctions. It also said it backed efforts against money laundering and terrorism financing.

What the Iran shipping sanctions allege

State Department spokesman Tommy Pigott said the firm built shell companies for years. Those companies hid the true owners of vessels that carried Iranian oil, petrochemicals and steel.

According to Pigott, the front companies served networks that sold millions of barrels. The profits went to the Quds Force of the Revolutionary Guard and to the Houthis.

Treasury added that staff at the firm often served as directors of the companies it registered. Two people with Panamanian and Greek nationality founded and own the firm. Washington sanctioned both of them, along with three employees.

The list also includes Roxette Maritime Shipping and Trading. That operator uses the firm as its corporate agent. Therefore, seven Panama-flagged cargo ships that it manages now count as blocked property.

Treasury further named two shipping agents: Amigoz Singapore and Dubai-based Whales Shipping Line. It says agents in Singapore and the UAE directly aid Iranian shadow fleet operations. Moreover, two Whales vessels face a block too.

The Greek bank probe

Alongside the Iran shipping sanctions, the Financial Crimes Enforcement Network issued a subpoena. It furthers an investigation into a Greek bank’s possible ties to Iran.

Treasury gave no name for the bank. It also did not claim that the bank had broken a law.

The agency asked six other European banks for information about relationships with sanctioned Iranian financial institutions. Treasury said this was the first time the agency used its subpoena power under the Bank Secrecy Act.

The Greek ministry said officials were evaluating all available information. It promised measures under national, EU and international law. Meanwhile, the US agency says it is cooperating with partners in Europe, Greece among them.

Reports in Greece also said the steps caused no immediate trouble for oil cargoes.

Washington’s wider campaign

Treasury Secretary Scott Bessent had a blunt message. Anyone who supported the Iranian regime, from illegal ship-to-ship oil transfers to the corner office of a law firm, would face sanctions, he said.

The US and Israel launched the war on February 28. This month, Washington has held back from striking Iran. Instead, it keeps up the blockade of Iranian ports and issues waves of sanctions on shipping networks and their helpers.

Bessent launched Operation Economic Outcast on August 24. Its goal is to cut off what remains of Iran’s revenue.

For now, the Iran shipping sanctions widen the net from tankers to lawyers and banks, and Greek shipping circles are watching for the next move.