U.S. Targets Fraudulent Ship Registries Used by Iran’s Shadow Fleet

The United States targeted a network accused of operating fraudulent ship registries and maritime certification services. Treasury said the operation helped sanctioned tankers carrying Iranian petroleum keep working under flags they were not legally allowed to use. The sanctions formed part of Operation Economic Outcast.

The network was allegedly led by Suniel Kumar Sharma and Jaspreet Preeti Shahid. It impersonated maritime authorities in several countries and issued registration documents and certifications without government approval. Treasury identified vessels including PING SHUN, LATTAFA, BINARY STAR, VERA, and MAJESTIC X.

OFAC also issued an industry alert. Insurers, banks, and other maritime service providers were warned to perform extra checks on suspicious registrations. Companies dealing with falsely flagged vessels could face sanctions or penalties, while governments were urged to investigate fraudulent registries and report them to the International Maritime Organization.

A ship registry records vessels authorized to fly a country’s flag and connects them with that country’s maritime oversight. A fraudulent registry copies that function without permission. It may issue registration documents, seafarer certificates, or classification services even though the named government never approved the operation.

The network in this case allegedly built websites that looked like legitimate national registries. It impersonated authorities in Guyana, Eswatini, Laos, Aruba, Nicaragua, and Sint Maarten. It then supplied documents that made sanctioned tankers appear connected to an authorized flag administration. Eswatini publicly disavowed one such operation, yet related services continued.

This appearance can mislead insurers, banks, ports, and other maritime businesses. OFAC highlighted documents that cannot be verified and mismatches between a vessel’s reported flag and its MMSI country code. A false registry therefore replaces real authorization with paperwork and online presentation that seem official but lack government backing.

The alleged operation was broader than a single fake registry. Treasury sanctioned Suniel Kumar Sharma, his wife Jaspreet Preeti Shahid, two associates, and nine companies or organizations linked to the network. The named entities included Oceaniek Technologies India, Aryavart Ship Management Private Limited, and Eswatini Maritime Affairs and International Ship Registry PTE Ltd.

Treasury connected the network to several sanctioned tankers. PING SHUN had previously carried multiple shipments of Iranian oil. LATTAFA, BINARY STAR, and VERA were also allegedly given false flags. Another vessel, MAJESTIC X, formerly PHONIX, was operating under a fraudulent Guyana flag when U.S. military forces seized it while it carried Iranian oil.

The network allegedly operated across multiple jurisdictions and services. It used impersonated authorities, registration websites, and maritime certifications. Treasury said the scheme reached back at least to 2014 and continued through the Singapore-based Eswatini registry company established in 2023.

Sanctions can restrict vessels from trading and make maritime companies wary of providing services. False flags helped overcome that barrier by making sanctioned tankers appear connected to a legitimate national registry. Treasury said the network enabled Iranian-oil carriers to continue operating under flags they were not legally authorized to fly.

The alleged mechanism combined fake government identities, official-looking websites, registration papers, and maritime certifications. The network impersonated authorities in several countries, including Guyana and Eswatini. Treasury said some covered vessels transported oil for Iran’s military and its proxies. PING SHUN had carried several Iranian-oil shipments, while MAJESTIC X was seized carrying Iranian oil under a fraudulent Guyana flag.

This tactic did not remove the sanctions. It obscured the vessels’ status and could make counterparties believe they were dealing with properly registered ships. OFAC now urges additional checks because false registrations may allow sanctioned vessels to remain active while avoiding the oversight associated with a real flag state.

Iran’s shadow-fleet operators use changing or fraudulent flags because flag status can hide a vessel’s identity and activities. OFAC said operators have long relied on frequent flag changes to obscure their operations. Fraudulent registries have become more common as vessels are removed from legitimate flag registries but still seek to operate.

A false registration lets a vessel display the appearance of national authorization without receiving it. The alleged network supplied documents and certifications through websites made to resemble official registries. Its services allowed sanctioned tankers carrying Iranian petroleum to continue working under flags that the named countries had not authorized.

The practice creates a serious enforcement problem. A vessel can look properly registered in records or during commercial dealings while lacking real oversight. OFAC warned companies to check unfamiliar flags, unverifiable documents, and other inconsistencies. The United States is targeting the financial networks behind Iran’s oil exports, while fraudulent registries provide another route for those networks to keep vessels moving.

OFAC identified several practical warning signs for insurers, banks, and maritime service providers. These include an unknown flag, registration documents that cannot be verified, and a mismatch between the reported flag and the country code linked to the vessel’s Maritime Mobile Service Identity number. These clues suggest the claimed registration may not be genuine.

Companies should also be cautious when a vessel claims a flag from a country without a recognized ship registry. The case illustrates why: the alleged network created websites that looked official and issued documents without authorization. Eswatini publicly disavowed one operation, yet a related company continued offering registration services.

OFAC urged additional due diligence rather than reliance on appearance alone. Businesses can compare registration information with recognized maritime records and question inconsistent documents or identities. The warning matters because companies providing services to falsely flagged vessels could face sanctions or penalties, while those vessels may also lack valid insurance and legitimate safety oversight.

A legitimate flag state is responsible for overseeing vessels registered under its flag. That role includes vessel safety, certification, and compliance with international maritime regulations. The flag therefore signals that a recognized government has accepted responsibility for monitoring the ship and its operations.

Fraudulent registrations remove that assurance. A vessel may hold documents that look official but were never authorized by the named country. Treasury warned that falsely flagged vessels may lack legitimate regulatory oversight and valid insurance coverage. The article’s example of MAJESTIC X shows how a tanker carrying Iranian oil operated under a fraudulent Guyana flag.

The consequences can extend beyond sanctions enforcement. Treasury said falsely flagged vessels could expose coastal nations to billions of dollars in environmental and economic damages after a major maritime casualty. OFAC encouraged governments to investigate false registries and report suspected cases to the International Maritime Organization, helping maritime databases identify invalid registrations.