On October 21, 2026, the Treasury sanctioned Panama- and Greece-based law firm Karnakis and Karnakis as part of the Operation Economic Outcast. Accordion go the Treasury, Karnakis and Karnakis supported illicit Iranian shipping activity for years, indirectly aiding Tehran’s ability to generate revenue to fund its military, weapons, and nuclear programs.
Through Operation Economic Outcast, the Treasury is targeting law firms and corporate service providers that establish shell and front companies for persons trading in sanctioned Iranian products, an essential service needed for any such malign actor to evade sanctions or regulatory compliance. For several years, Karnakis & Karnakis, a law firm operating out of Panama and Greece, utilized its corporate services to establish maritime companies managing shadow fleet vessels that transported hundreds of millions of dollars in sanctioned Iranian petroleum, steel, petrochemicals, and related goods.
In addition, the Treasury sanctioned Singapore- and UAE-based shipping agents that directly aid Iranian shadow fleet operations. Shipping agents play a critical role in shadow fleet operations by aiding the transit of illicit Iranian cargo through ports, including oil, petroleum, and other commodities. The sanctioned shipping agents include Amigoz Singapore PTE. Ltd. and Whales Shipping Line LLC.
All property and interests in property of designated persons within the United States or controlled by U.S. persons are blocked and must be reported to OFAC, including entities owned 50% or more by blocked persons. Unless authorized or exempt, transactions involving blocked persons are prohibited, and violations may result in civil or criminal penalties, including civil penalties imposed on a strict liability basis.
Read the Treasury's press release here.