U.S. Treasury targets more IRISL front companies

The U.S. Department of the Treasury yesterday announced the designation of 24 shipping companies affiliated with the Islamic Republic of Iran Shipping Lines (IRISL) and two entities that are subordinates of Iran’s Aerospace Industries Organization (AIO).

“Designation” means designation under Executive Order 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction and their supporters, and isolating them financially. Designations under E.O. 13382 prohibit all transactions between the designees and any U.S. person, and freeze any assets the designees may have under U.S. jurisdiction. Treasury designated IRISL in September 2008, pursuant to E.O. 13382 for providing logistical services, including facilitating shipments of military related cargoes for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL).

The entities designated yesterday are:

Four Hong Kong based shipping companies – Starry Shine International Limited, Ideal Success Investments Limited, Top Glacier Company Limited, and Top Prestige Trading Limited – for being owned and managed by Ahmad Sarkandi and Ghasem Nabipour, two individuals designated by Treasury in October 2010 for acting for or on behalf of IRISL.

Sixteen shipping companies, each based at the same address in Hong Kong, for being owned or controlled by IRISL or affiliated entities. In late 2009, these sixteen companies became the owners of a series of vessels, each of which is already identified on OFAC’s Specially Designated Nationals and Blocked Persons List as blocked property tied to IRISL, that were previously owned by the four Hong Kong companies listed above.

Four shipping companies that share their Isle of Man registered addresses with eight previously-designated shipping companies wholly-owned by IRISL, for being owned or controlled by IRISL or IRISL front companies.

Shahid Ahmad Kazemi Industries Group, a subordinate to AIO that is responsible for the development and production of surface-to-air missiles. It is suspected of soliciting foreign technology for Iran’s missile programs and participating in North Korea’s missile-related programs. North Korea has provided significant assistance to Iran in its development of ballistic missiles and missile technology.

M. Babaie Industries, also linked to Iran’s WMD proliferation efforts and suspected of soliciting foreign technology for Iran’s missile programs, was designated for being owned or controlled by, or acting for or on behalf of AIO.

The full list of entities designated yesterday is:

• STARRY SHINE INTERNATIONAL LIMITED Address: RM B 12th Floor Two Chinachem Plaza 135 Des Vouex Rd C, Central District Hong Kong Island, Hong Kong
• IDEAL SUCCESS INVESTMENTS LIMITED Address: RM B 12th Floor Two Chinachem Plaza 135 Des Vouex Rd C, Central District Hong Kong Island, Hong Kong
• TOP GLACIER COMPANY LIMITED Address: RM B 12th Floor Two Chinachem Plaza 135 Des Vouex Rd C, Central District Hong Kong Island, Hong Kong
• TOP PRESTIGE TRADING LIMITED Address: RM B 12th Floor Two Chinachem Plaza 135 Des Vouex Rd C, Central District Hong Kong Island, Hong Kong
• ALPHA EFFORT LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• SANDFORD GROUP LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• SMART DAY HOLDINGS GROUP LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• SYSTEM WISE LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• LOGISTIC SMART LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• NEW DESIRE LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• ADVANCE NOVEL LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• CONCEPT GIANT LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• PARTNER CENTURY LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• SINO ACCESS LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• TRUE HONOUR HOLDINGS LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• BEST PRECISE LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• GREAT METHOD LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• NEUMAN LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• SACKVILLE HOLDINGS LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• TRADE TREASURE LIMITED Address: 15th Floor Tower One Lippo Center 89 Queensway, Hong Kong
• LOWESWATER LIMITED Address: Manning House, 21 Bucks Road Douglas, IM1 3DA, Isle of Man
• MILL DENE LIMITED Address: Manning House, 21 Bucks Road Douglas, IM1 3DA, Isle of Man
• SHALLON LIMITED Address: Manning House, 21 Bucks Road Douglas, IM1 3DA, Isle of Man
• SPRINGTHORPE LIMITED Manning House, 21 Bucks Road Douglas, IM1 3DA, Isle of Man
• SHAHID AHMAD KAZEMI INDUSTRIES GROUP Address: Pasdaran Avenue, Tehran, Iran
• M. BABAIE INDUSTRIES AKA: Shahid Babaie Industries AKA: Shahid Babaie Industries Complex AKA: Shahid Babaii Industries Co. Address: P.O. Box 16535-176; Tehran 16548, Iran

Treasury says that yesterday’s actions build on its efforts to expose the financial and corporate underpinnings of IRISL and AIO, both of which face international sanctions for their involvement in Iran’s missile programs. The actions respond to continuing efforts by Iran to evade sanctions and its ongoing creation and use of new front companies, subsidiaries, affiliates, and other deceptive measures to protect IRISL and AIO and to advance its proliferation activities.

“IRISL is under tremendous financial pressure from international sanctions, and it is going to extreme lengths to obscure its network and the ownership of vessels,” said Under Secretary for Terrorism and Financial Intelligence Stuart Levey. He said that the designations “expose the latest in a string of deceptive measures Iran is taking to continue its illicit conduct.””