U.S. Treasury Targets Indian Network That Falsified Ship Registrations to Serve Iranian Oil Trade
Key Facts
The U.S. Treasury Department announced on November 4 that it was targeting an Indian network it said had helped Iran’s shadow fleet through ship-registration fraud, in a move focused on the infrastructure enabling sanctioned tankers to continue transporting oil. The department linked the network to Indian businessman Sunil Kumar Sharma and his wife, Jaspreet Preeti Shahid. It said their schemes provided fake flags and certificates to ships carrying Iranian oil, including vessels operating on behalf of the Iranian military and its proxies. Treasury Secretary Scott Bessent warned that Washington would punish those who continued to support the Iranian regime “by land, sea or air.” The announcement came on November 4 and does not substantiate the claim that sanctions were imposed on 15 entities on November 6.
According to Treasury, the network claimed to represent countries across multiple continents, from Guyana to Eswatini and Laos, to provide fake maritime registration and classification services. The department said these services enabled sanctioned ships to display flags and certificates that did not reflect their actual registration. Among the vessels it named were tankers carrying Iranian petroleum products, including LATTAFA, BINARY STAR and VERA. It also named PING SHUN and said a ship registry company linked to Sharma continued to provide flag services to ships transporting Iranian oil. The department added that the vessel had transported multiple Iranian oil cargoes when it was sanctioned.
Treasury’s account traces Sharma’s activities to attempts dating back to early 2014 to impersonate Dominica’s ship-registration authority. In 2023, Sharma founded a Singaporean company called Eswatini Maritime Affairs and International Ship Registry PTE. Ltd. The department said the company provided registrations for ships transporting Iranian oil, including PING SHUN. It said media investigations prompted Sharma to shut down several maritime registries it described as misleading. Those registries included the Laos registry, which had previously operated under the name International Maritime Safety Agency in Guyana.
Treasury warned that fake maritime flags and certificates could help ships evade international rules on crew safety and environmental protection. It said vessels sailing under false flags lack valid protection and indemnity insurance, leaving the countries in whose waters they operate to bear the consequences of potential accidents. The department estimated that these ships could cause billions of dollars in damage to those countries’ economies. As an example of field measures linked to such networks, Treasury said the U.S. Department of War seized the MAJESTIC X on April 22, 2026, while it was carrying Iranian oil when troops boarded it. The department said the vessel was operating under a fake Guyanese flag.
Treasury said property and interests in property belonging to the designated persons, if located in the United States or in the possession of U.S. persons, are blocked under the action. The restrictions also cover entities owned, directly or indirectly, 50% or more by one or more blocked persons. This means the blocking may extend to companies owned by the listed entities or individuals, under the rules cited by the department. As part of a broader campaign against the transport of Iranian oil, Treasury announced on October 8 that it was targeting 17 ships it said had transported millions of barrels of Iranian crude oil, petroleum products and petrochemicals. It said at the time that the illicit shipping network was constantly changing and that it would continue monitoring and disrupting attempts to evade sanctions.
Treasury linked continued pressure on maritime networks to international action, with Bessent saying teams from the U.S. Treasury, State and War departments were meeting with counterparts in other countries. He added that Washington expected every country to provide a timeline for ending the activities it had identified, warning: “If they do not take action, we will act unilaterally using Treasury’s authorities.” In oil markets, Brent futures had fallen 1% on November 3 to $103.60 a barrel, their lowest close since October 7. Reuters attributed the move to the market balancing peace talks against supply risks. That settlement preceded Treasury’s November 4 announcement and did not represent a market response to it.