{"id":18234,"date":"2026-10-22T20:00:00","date_gmt":"2026-10-23T01:00:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=18234"},"modified":"2026-10-22T13:19:24","modified_gmt":"2026-10-22T18:19:24","slug":"a-panama-law-firm-was-just-sanctioned-for-hiding-7-vessels-for-an-iran-oil-scheme","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/news\/a-panama-law-firm-was-just-sanctioned-for-hiding-7-vessels-for-an-iran-oil-scheme\/","title":{"rendered":"A Panama Law Firm Was Just Sanctioned for Hiding 7 Vessels for an Iran Oil Scheme"},"content":{"rendered":"\n

The United States Treasury Department imposed sanctions Tuesday on a Panama law firm accused of building shell companies<\/a> to conceal vessels transporting Iranian petroleum<\/a> for the Quds Force and Houthi militants<\/a>. The action against Karnakis & Karnakis, which also maintains offices in Greece, targets what officials describe as a key enabler of Tehran’s shadow fleet.<\/p>\n\n\n\n

The sanctions were announced under Operation Economic Outcast<\/a>, a coordinated effort to disrupt maritime networks that Washington says generate revenue for destabilizing activities<\/a>. Seven Panama-flagged cargo vessels are directly linked to the measures.<\/p>\n\n\n\n

\"Department
The sanctions were announced under Operation Economic Outcast<\/a>, a coordinated effort to disrupt maritime networks that Washington says generate revenue for destabilizing activities<\/a>. Department of Treasury. By NBC.<\/figcaption><\/figure>\n\n\n\n

Panama Law Firm’s Role in Sanctions Evasion<\/a><\/h2>\n\n\n\n

Treasury officials allege the firm created front companies used by networks trading millions of barrels of Iranian oil. These entities obscured the true ownership of vessels carrying petroleum and petrochemical products through international ports.<\/p>\n\n\n\n

Beyond the firm itself, the sanctions reach five individuals associated with its operations, a ship management company controlling the seven Panama-flagged vessels, and maritime agents in Singapore and Dubai. Those agents allegedly facilitated the movement of Iranian cargo across international shipping lanes.<\/p>\n\n\n\n

The measures fall under Executive Order 13902, which authorizes sanctions against key sectors of Iran’s economy, including its petroleum industry. This legal framework has been used repeatedly to pressure Tehran’s revenue streams.<\/p>\n\n\n\n

\"Vessel
Washington’s broader goal is limiting Iran’s ability to use clandestine maritime networks for oil transport. Vessel on Hormuz by Al-Jaazera. <\/figcaption><\/figure>\n\n\n\n

Shadow Fleet Targeting and Global Coordination<\/h2>\n\n\n\n

The Treasury Department urged governments, flag registries, port authorities, and private companies to recognize warning signs tied to the so-called shadow fleet. Officials want businesses to avoid transactions with actors who facilitate sanctions evasion.<\/p>\n\n\n\n

Washington’s broader goal is limiting Iran’s ability to use clandestine maritime networks for oil transport. The revenue from these operations, according to US authorities, funds the Islamic Revolutionary Guard Corps’ Quds Force and Houthi forces in Yemen.<\/p>\n\n\n\n

The designation of a law firm marks an escalation in enforcement strategy. Previous rounds focused primarily on vessel operators and trading companies. Targeting professional service providers signals a willingness to pursue enablers across the entire supply chain.<\/p>\n\n\n\n

\"M
Panama operates one of the world’s largest ship registries, making it a focal point for sanctions enforcement. M N First Margaux. By Maritime T.<\/figcaption><\/figure>\n\n\n\n

Implications for Panama’s Maritime Registry<\/h2>\n\n\n\n

Panama operates one of the world’s largest ship registries, making it a focal point for sanctions enforcement. The use of Panama-flagged vessels in alleged evasion schemes raises questions about oversight mechanisms within the registry system.<\/p>\n\n\n\n

Maritime legal experts note that shell company formation through law firms represents a standard practice in shipping finance. Distinguishing legitimate corporate structuring from deliberate concealment remains a persistent challenge for regulators and flag states alike.<\/p>\n\n\n\n

No immediate response from Karnakis & Karnakis was available regarding the sanctions designation. The firm now faces restrictions on access to US financial systems and property holdings.<\/p>\n\n\n\n