The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating and identifying as blocked property a dozen persons and vessels, respectively, that have played a critical role in financing the Yemeni Houthi militia's destabilising regional activities as part of the network of Sa’id al-Jamal. The action includes an Indonesia-based Malaysian and Singaporean national and a People’s Republic of China (PRC)-based Chinese national who have facilitated illicit shipments and engaged in money laundering for the network.
OFAC said Sa’id al-Jamal’s network continues to provide tens of millions of dollars in revenue to the Houthis in Yemen through its shipment of Iranian commodities, including oil, a funding stream contributing to the Houthis’ ongoing attacks against commercial shipping in the Red Sea. This action targets numerous aspects of this illicit network across the spectrum of its operations, from clients and facilitators to insurance providers, vessels, and ship management firms.
The action is being taken pursuant to the counterterrorism authority Executive Order (EO) 13224, as amended. OFAC designated Sa’id al-Jamal pursuant to EO 13224, as amended, on June 10, 2021, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Iran’s Islamic Revolutionary Guard Corps – Qods Force (IRGC-QF).
The IRGC-QF was designated pursuant to EO 13224 on October 25, 2007, for providing support to multiple terrorist groups. The US Department of State’s designation of Ansarallah (commonly known as the Houthis) as a Specially Designated Global Terrorist group, pursuant to EO 13224, as amended, became effective on February 16, 2024.
Sa’id al-Jamal’s network relies on numerous, seemingly innocuous, companies in multiple jurisdictions to illicitly generate tens of millions of dollars of revenue. Seychelles-registered, Thailand and Singapore-based Ascent General Insurance Company has provided insurance to vessels that were identified as blocked property of those sanctioned for providing support to Sa’id al-Jamal. United Arab Emirates (UAE)-based Fornacis Energy Trading has purchased and shipped tens of millions of dollars’ worth of Iranian cargo for the Sa’id al-Jamal network.
Ascent General Insurance Company and Fornacis Energy Trading are being designated pursuant to EO 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, Sa’id al-Jamal.
Marshall Islands-registered and UAE-based Barco Ship Management (Barco) is the ship manager and commercial manager of multiple vessels, including the Panama-flagged product tanker Wanji, which has been utilised by Sa’id al-Jamal’s network for illicit shipments to the UAE worth tens of millions of dollars. Barco additionally manages and operates the Panama-flagged product tanker Oceanic II and the Panama-flagged crude oil tanker Tirex. Like Barco, the Marshall Islands-registered Sea Knot Shipping has used the crude oil tanker Mirova Dynamic to transport illicit shipments worth tens of millions of dollars for Sa’id al-Jamal.
Barco and Sea Knot Shipping are being designated pursuant to EO 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, Sa’id al-Jamal. Wanji, Oceanic II, and Tirex are being identified as blocked property in which Barco has an interest. Mirova Dynamic is being identified as blocked property in which Sea Knot Shipping has an interest.
UAE-based Alpha Shine Marine Services is the ship manager of the Panama-flagged crude oil tanker Kasper, which has been used by the Sa’id al-Jamal network to facilitate millions of dollars’ worth of illicit trade under forged shipping documents.
Alpha Shine Marine Services is being designated pursuant to EO 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, Sa’id al-Jamal. Kasper is being identified as blocked property in which Alpha Shine Marine Services has an interest.
All property and interests in property of the designated persons described above that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 per cent or more by one or more blocked persons are also blocked.
Unless authorised by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
