A company headquartered in Cyprus has been added to the U.S. sanctions list in an effort “to increase pressure on Iran’s nuclear program,” according to an announcement from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

In a post on X (formerly Twitter), the U.S. Embassy in Cyprus stated: “As part of the maximum pressure campaign to end Iran’s nuclear threat, sanctions have been announced against entities involved in Iran’s oil industry, including one based in Cyprus. The U.S. and Cyprus continue to cooperate in addressing global challenges and threats.”

On Thursday, the U.S. Treasury issued the largest sanctions package related to Iran since 2018, targeting what it described as “a corrupt shipping empire connected to the regime, which has funneled billions of dollars to Tehran.”

The OFAC identified more than 50 individuals and entities, along with over 50 vessels, that are part of the shipping network controlled by Mohammad Hossein Shamkhani. According to the Treasury, Shamkhani is the son of Ali Shamkhani, a top political adviser to Iran’s Supreme Leader.

The U.S. alleges that Hossein leveraged his father’s political clout within the Iranian regime to build and operate a vast fleet of tankers and container ships. This network reportedly transports oil and petroleum products from Iran and Russia to buyers worldwide, generating tens of billions of dollars in revenue.

“This is the largest set of sanctions imposed since the Trump administration’s maximum pressure campaign against Iran,” said U.S. Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson. “These actions prioritize U.S. national security by targeting regime elites who enrich themselves while Tehran threatens global stability.”

The Shamkhani network is said to control a significant portion of Iran’s crude oil exports, profits from which benefit both his family and the Iranian regime. His father, Ali Shamkhani, was sanctioned by the U.S. in 2020.

Cyprus-Based GMCG Ltd Among Sanctioned Entities

The sanctions also target GMCG Ltd, a company headquartered in Cyprus, for its alleged involvement in the network. According to the Treasury, G M C G Shipping L.L.C. (based in the UAE) and GMCG Ltd. (based in Cyprus) helped register and pay fees for front companies used by Shamkhani’s network. One such company is Neo Shipping Inc., registered in the Marshall Islands.

The sanctioned network includes numerous shipping management companies and shell corporations, some of which present themselves as legitimate financial service providers. The U.S. claims that the network launders billions in proceeds from the sale of Iranian and Russian crude oil, with China as a major destination.

The U.S. also accuses the network of using sophisticated methods to mask its activities and obscure ties to the Shamkhani family, Iran, and Russia. Mohammad Hossein Shamkhani allegedly operates under aliases including "H", "Hector", and "Hugo Hayek", the latter being listed on a Dominica-issued passport.

Additional Sanctions and Legal Consequences

In total, the U.S. Department of State designated 20 entities and identified 10 vessels as blocked property due to their involvement in the trade and transport of Iranian oil and petrochemical products.

According to the press release, as a result of these sanctions, all assets held in the U.S. or under U.S. jurisdiction by designated persons are frozen and must be reported to OFAC.

Furthermore, any entity owned 50% or more by one or more of the designated individuals or companies is also automatically blocked.

Violations may lead to civil or criminal penalties, and any financial institutions or other parties engaging in specific transactions with sanctioned individuals or entities may also face sanctions. Prohibited transactions include providing funds, goods, or services to or from sanctioned persons, as well as receiving any benefit from them.