U.S. Senator Mike Crapo (R-Idaho) joined Tim Scott (R-South Carolina) and Senate Banking Republicans in raising concerns with the delayed implementation and enforcement of sanctions on Iran’s oil sector. In a letter to U.S. Secretary of the Treasury Janet Yellen, Crapo, Scott and colleagues urged the Treasury Department to deploy all available sanctions enforcement tools to monitor and sanction illicit oil transactions involving Iran and to provide detailed information regarding the administration’s efforts to do so.
“Congress has consistently identified Iran’s oil sector as a critical area for sanctions due to its significant role in financing destabilizing regional terrorism and nuclear development,” wrote the Senators. “Unfortunately, delays in fully implementing the SHIP Act remain a concern, as does the need for increased sanctions enforcement.”
“The recent determination on October 11th to expand Executive Order 13902 to persons supporting Iran’s petroleum or petrochemical sectors and the subsequent action on December 3rd are encouraging steps, but now your Department must continue to follow through with rigorous enforcement action,” the Senators continued. “Lax sanctions enforcement has enabled certain nations, particularly in Southeast Asia, to openly disregard U.S. sanctions and sell Iranian crude to China. For example, trade data show that Malaysia is exporting oil to China in excess of its own production capacity, a clear indication of involvement in Iranian oil trade. To address these deficiencies, it is critical that Treasury deploys all available enforcement tools and fully engages in monitoring and sanctioning illicit oil transactions involving Iran.”
In closing, the letter demands the following information from the Treasury Department no later than December 20, 2024:
- An assessment of all vessels listed by United Against Nuclear Iran (UANI) in its Tanker Tracker and its Ghost Armada to determine whether they meet the criteria for sanctions under E.O. 13902 as entities operating in Iran’s petroleum and petrochemical sectors.
- A comprehensive assessment of all foreign financial institutions facilitating Iranian oil exports.
- A briefing on Treasury’s engagements with foreign governments to improve sanctions enforcement on Iranian oil exports.
- A classified briefing on Treasury’s utilization of intelligence community resources to effectively monitor Iranian oil exports and the associated financial networks.
- An updated Financial Crimes Enforcement Network (FinCEN) advisory to financial institutions alerting them of recent tactics and emerging trends in sanctions evasion by Iran and its oil buyers.
U.S. Senators Mike Rounds (R-South Dakota), Thom Tillis (R-North Carolina), John Kennedy (R-Louisiana), Bill Hagerty (R-Tennessee), Katie Britt (R-Alabama), Kevin Cramer (R-North Dakota), and Steve Daines (R-Montana) joined the Crapo and Scott on the letter.
The full letter is available here.