U.S. Treasury takes aim at IRISL’s insurer

U.S. Treasury takes aim at IRISLÆs insurer    The U.S. Treasury Department on Tuesday ratcheted up its targeting of financial networks linked to the Islamic Republic of Iran Shipping Lines (IRISL) by adding the carrier's vessel insurer to the list of sanctioned Iranian entities.
   IRISL was designated by Treasury in September 2008 for its provision of logistical services to Iran’s Ministry of Defense and Armed Forces Logistics, the arm of the Iranian military that oversees its ballistic missile program.
   'Since being designated, IRISL has been increasingly isolated from the international financial system and has in turn engaged in deceptive behavior to evade the impact of sanctions and increased scrutiny of its activities ' including by relying on an expansive network of front companies, falsifying shipping documents, changing the nominal ownership of vessels, and repainting ships, all to hide the affiliation of vessels with IRISL,' Treasury said in a statement.
   IRISL has thus been unable to maintain adequate hull and protection-and-indemnity (P&I) insurance because of international sanctions. In October 2009, the United Kingdom froze all business ties with IRISL under its counter-terrorism authorities, effectively denying IRISL the ability to continue receiving insurance coverage and other services from U.K.-based P&I clubs.
   IRISL then sought insurance coverage from other European providers and P&I clubs that declined to provide this business in light of the recent U.K. action. For a short period, IRISL obtained insurance coverage from a Bermuda-based P&I club until the government of Bermuda enacted a law in January 2010 to mirror the U.K. action, forcing IRISL out of the Bermuda insurance market.
      In early 2010, IRISL was forced to turn to Tehran-based Moallem Insurance Co., which was not in the business of providing maritime insurance.      
   'The enhanced focus of U.S. and international sanctions on IRISL's illicit activities and deceptive practices has, among other things, led IRISL to default on commercial loans and has made it increasingly difficult for Iran to maintain insurance coverage on IRISL ships,' Treasury said. 'As a result, IRISL has been unable to operate with its full fleet of ships.'