Posts Tagged ‘proliferation’

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Nine banks hoodwinked by IRISL

June 27, 2011

Iran, the grand Shia deceiver, managed to trick nine New York bank houses into making transactions on behalf of their shipping industry in violation of U.S. sanctions laws.  Iran is known to use its own banks and international banks to funnel money back into its nuclear programs.  At least this time they were eventually discovered, $60 million later…

From MoneyLaundering.com on June 21:

Banks Receive Praise and a Warning in Press Conference Announcing Indictments Tied to Iranian Shipper

By Brian Monroe and Kieran Beer

Banks were the subject of praise and a warning at a press conference on Monday unveiling a 317 count indictment against 11 corporations and five individuals for their alleged participation in a conspiracy involving an Iranian shipping company.

Manhattan District Attorney Cyrus R. Vance characterized nine banks as victims of deception when they processed more than $60 million of payments for the Islamic Republic of Iran Shipping Lines (IRISL) in violation of U.S. sanctions.

The banks “were not complicit in any way, but on the contrary have been very helpful” during the 14-month investigation that culminated in the indictments, said Adam Kaufmann, who is chief of the investigative division in the district attorney’s office.

And, the efforts of the nine large clearing banks to aid the district attorney’s investigation were “very aggressive and very sophisticated,” according to Adam Szubin, director of the Office of Foreign Assets Control (OFAC), the U.S. Treasury Department agency tasked with managing U.S. economic sanctions, who also took part in the press conference.

But Vance added that “to the extent there are banks that are banking sanctioned entities or not paying enough attention, this indictment is a continuing indication that our office and OFAC are watching carefully and will take action when we see intentional, pervasive efforts to violate federal and state law.”

IRISL and 15 others set up shell companies in Singapore, the United Kingdom and the United Arab Emirates in order to fool major New York-based dollar clearing banks into processing about $63 million in transactions, according to the indictment.

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