US Treasury issues alert on China’s “teapot” refineries enabling Iran’s oil trade, funneling billions to Tehran through covert networks and “shadow fleet” tactics, while exposing FIs to sanctions risks

It further details common evasion techniques such as the use of front companies in Asia and the UAE, intermediary brokers, and “shadow fleet” shipping practices involving ship-to-ship transfers, falsified documentation, and vessel identity manipulation. OFAC urges financial institutions to strengthen risk-based controls, conduct enhanced due diligence, and clearly communicate sanctions compliance requirements, while warning that continued facilitation of Iran-related oil trade may expose foreign financial institutions to secondary sanctions…