The US Justice Department is investigating whether a son of Iran’s former security chief breached sanctions while using a global network of banks, Bloomberg reported on Wednesday citing people familiar with the matter.
The probe focuses on billions of dollars in money movements between firms overseen by oil tycoon Hossein Shamkhani, the son of a top adviser to Supreme Leader Ali Khamenei, Bloomberg said.
According to the report, the probe has drawn on information from insiders within Shamkhani’s business network and from Wall Street banks that had relationships with entities linked to him.
The main target of the investigation is Shamkhani, rather than the banks, Bloomberg said.
JPMorgan Chase & Co., ABN Amro Bank NV, Marex Group Plc, Standard Chartered PLC, Emirates NBD PJSC and National Bank of Fujairah PJSC are among the institutions under review, the report said citing several people familiar with the probe.
Bloomberg said spokespeople for the Justice Department, JPMorgan, ABN Amro, Marex and Standard Chartered declined to comment. National Bank of Fujairah said it is “not under investigation by the US Department of Justice,” while Emirates NBD said it has not received any communication from US authorities.
Bloomberg said Shamkhani did not respond to a request for comment the news agency sent to his lawyers.
Bloomberg reported last November that the US Treasury Department was examining JPMorgan’s relationship with a hedge fund said to be overseen by Shamkhani.
According to Bloomberg's latest report, the Justice Department’s probe is broader in scope, aiming to map out the tycoon’s global financial network and pursue potential indictments or arrests of his associates, with cooperation expected from authorities in the United Arab Emirates, a key hub for his operations.
Shamkhani, who operates mainly from Dubai, was sanctioned by the United States in July along with dozens of individuals, companies and vessels linked to his network in what the US Treasury described as its largest Iran-related action in seven years. The UK and European Union also imposed sanctions in recent months.
US officials said Shamkhani used his father’s political influence to build a fleet of tankers and container ships that transported Iranian and Russian oil worldwide through shell companies. The Treasury said he used aliases including “H,” “Hector” and “Hugo Hayek” to conceal his dealings.
Following the sanctions, Dominica revoked Shamkhani’s passport issued under the Hayek pseudonym, and Panama de-flagged several vessels tied to his firms.
Bloomberg's report said some of Shamkhani's companies have since shifted operations to Oman.
Another Bloomberg investigation last year found that Shamkhani’s network had become a key channel for Iranian and Russian oil exports and had established a hedge fund with offices in London, Dubai and Geneva to manage proceeds from the trade.
