OFAC sanctions more Houthi-linked ships and another captain

More ships, vessel operators, and a ship’s captain have been sanctioned in a new round of U.S.Treasury sanctions targeting the Houthis and their Iranian enablers. Treasury’s Office of Foreign Assets Control (OFAC) says all were involved 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.

“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 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 another Iranian proxy, Lebanese Hizballah, and identifying as blocked property four vessels that company owns and manages.

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 — and becomes at least the fourth ship captain to become designated by OFAC,

Houthi-affiliated and UAE-based ONX Trading FZE has facilitated illicit payments related to the al-Jamal network’s shipping operations.

DS Shipping Limited, Arafat Shipping Company, Arif Ibrahim Khot, and ONX Trading FZE are being designated 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 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 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.

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.

• View identifying information on the individuals and entities designated by OFAC HERE.