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Treasury Requested Why US P&I Membership Insures Ships Carrying Iran Oil

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A Republican congressman is asking the Treasury Division to clarify its dealing with of a US insurance coverage firm that lined dozens of tanker ships suspected of carrying sanctioned Iranian oil.

Consultant Zach Nunn of Iowa, a member of the Home Monetary Companies Committee, sent a letter Thursday inquiring about New York Metropolis-based American Membership. “An American firm reaping a revenue from its involvement in insuring tankers which might be transporting illicit Iranian oil to finance terrorism calls for solutions from this Administration,” he wrote.

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Nunn cited a February report by Bloomberg Information displaying that American Membership lined 21 vessels suspected of carrying illicit Iranian oil, greater than any of its 11 bigger friends. The insurer had not too long ago dropped 19 different vessels after inquiries from Nunn and Bloomberg, the report acknowledged. The Bloomberg story was based mostly on analysis by the nonprofit group United In opposition to Nuclear Iran, which maintains a listing of ships suspected of carrying the nation’s crude.

The Oil Was From Iran. The Insurance Was From New York

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US sanctions prohibit Western companies from knowingly taking part in sanctioned actions. However the Treasury Division, which oversees sanctions, asks insurers like American Membership to go additional and monitor whether or not ships they cowl are secretly buying and selling in sanctioned merchandise.

Nunn requested Treasury to clarify what it’s doing to analyze “American Membership and its involvement within the sale of illicit Iranian oil,” in addition to what the division is doing extra broadly to police American companies for sanctions compliance.

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American Membership has mentioned that its compliance program is top-notch and that it might by no means knowingly insure a ship that violates sanctions. “Our due diligence insurance policies and procedures are identified to the related authorities, together with OFAC, and so far as we all know, are accepted by these establishments,” mentioned Daniel Tadros, the corporate’s chief working officer, referring to Treasury’s Workplace of International Belongings Management. “We are going to proceed to do the perfect job attainable on the subject of due diligence investigations and to take motion when essential.”

A Treasury spokesperson didn’t reply to a message searching for remark.

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{Photograph}: The impounded Iranian crude oil tanker, Grace 1, is anchored off the coast of Gibraltar on Saturday, July 20, 2019. Picture credit score: Marcelo del Pozo/Bloomberg

Copyright 2024 Bloomberg.

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