How A Chandigarh Couple Allegedly Helped Iran’s Sanctioned Oil Tankers Sail Under False Flags

The US Treasury has sanctioned a Chandigarh-based couple, accusing them of operating an international network of fraudulent maritime registries that helped vessels carrying Iranian petroleum evade sanctions and continue operating under false flags.

In an announcement on November 4, the Treasury named Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, alleging that their network provided fraudulent registrations and certifications to sanctioned tankers, including vessels operating on behalf of Iran’s military and its proxies. The designations were made under Executive Order 13902, which targets Iran’s petroleum, petrochemical and other economic sectors.

According to the Treasury, the couple’s activities began as early as 2014, when they attempted to impersonate Dominica’s maritime flagging authority. In 2023, Sharma established the Singapore-based Eswatini Maritime Affairs and International Ship Registry. The department alleged that the network subsequently operated websites and registries claiming to represent several jurisdictions, including Aruba, Guyana, Laos, Nicaragua and Timor-Leste, without proper government authorisation.

Through these operations, the network allegedly provided false flags to sanctioned Iranian oil tankers, including LATTAFA, BINARY STAR and VERA. Treasury said some of the registries continued offering services even after the governments concerned had revoked their authorisation or publicly disavowed them.

How The Alleged Network Worked

A ship’s flag identifies the country under whose authority it is registered. Flag registration is necessary for vessels to meet international requirements and access services such as insurance and maritime support. Treasury’s Office of Foreign Assets Control (OFAC) said fraudulent registries can give sanctioned vessels a veneer of legitimacy, allowing them to continue operating despite restrictions.

The network allegedly used websites that mimicked official government registries and issued documentation that could mislead shipping companies, insurers and other maritime service providers. OFAC warned that vessels using false flags may lack valid protection and indemnity insurance, creating risks for countries whose waters they enter.

The sanctions also cover two other Indian nationals, Ashwani Kumar Dhiman and Ishwinder Singh, whom Treasury linked to companies in Sharma and Shahid’s network. Several India-based entities, including Oceaniek Technologies India, Aryavart Ship Management, Polynesia Maritime and Precept Trends, were also designated. A Turkey-based ground-handling company was separately sanctioned for providing services to Iranian airlines.

The action forms part of Washington’s Operation Economic Outcast, which targets Iran’s oil trade and the intermediaries accused of helping it evade sanctions. The designations block property and financial interests under US jurisdiction and generally prohibit US persons from conducting transactions with those listed.