A Bloomberg investigation reveals that Iranian oil baron Hossein Shamkhani utilized Dominican and EU passports to bypass sanctions and gain entrance to international banking systems. The report discloses how Shamkhani and his associates exploited Dominica’s Citizenship by Investment program to acquire alternative identities, thereby circumventing compliance checks from major financial institutions despite being politically exposed individuals linked to sanctioned activities.
An investigation published by Bloomberg has unveiled that Hossein Shamkhani, son of Iran’s former national security chief, has leveraged Dominican and European Union (EU) passports to evade international sanctions and access global banking systems. This investigation, which consisted of interviews with over four dozen individuals familiar with Shamkhani’s operations, highlights how he and his associates first acquired Dominican passports and subsequently used them to obtain EU passports from Malta and Cyprus. This strategic maneuver allowed them to circumvent compliance checks by major financial institutions, gaining trust among significant banking and oil entities despite Shamkhani’s alleged involvement in arms dealings with Russia.
Shamkhani, who holds a Master of Business Administration, established the Admiral Group trading firm and was motivated to create a base in Dubai due to its substantial Iranian community and favorable business environment. However, his political connections and nationality posed a significant risk to traditional banking relationships, making Dominica’s Citizenship by Investment (CBI) program an attractive solution. This program has generated billions for the Dominican economy since its inception in the 1990s and permits brokerage transactions through private intermediaries from locations such as Dubai.
Through this CBI route, Shamkhani and select associates obtained Dominican citizenship, often adopting different names legally via the island’s Deed Poll system. These passports facilitated acquiring additional EU citizenships from Malta and Cyprus, thereby providing a cover that enabled them to pass stringent financial compliance checks, which would typically flag their Iranian origins and political exposure. Other Iranian nationals implicated in this scheme are linked to various businesses and actively utilize their Dominican citizenship for international operations without revealing their links to Iran in corporate filings.
Bloomberg states that Dominica’s CBI program has effectively enabled Shamkhani and his associates to construct a multi-billion dollar enterprise, expanding across different sectors and facilitating global banking relations. Requests for comments from officials in Dominica, Cyprus, and Malta, as well as individuals named in the investigation, went unanswered.
The article focuses on an investigation that reveals how individuals linked to Iranian sanctions evasion utilized Dominica’s Citizenship by Investment (CBI) program and EU citizenship to access international banking systems. It discusses the implications of the CBI program in providing a pathway for individuals with questionable political ties to obtain alternative identities, subsequently mitigating concerns that arise from their original nationalities. This situation emphasizes the intersection of finance, geopolitics, and citizenship legislation in the modern era, illustrating the risks and vulnerabilities within global regulatory frameworks.
The investigation led by Bloomberg underscores significant vulnerabilities in the global financial regulatory landscape, particularly concerning the unchecked use of citizenship programs that allow individuals with political exposure to evade sanctions. The findings highlight the need for stricter compliance measures and greater scrutiny of citizenship by investment programs, as they can inadvertently facilitate international financial misconduct and undermine global security efforts. The situation with Hossein Shamkhani serves as a cautionary tale regarding the intersection of economic opportunity and illicit activity.
Original Source: whistleblower.org
