US Sanctions Indian Network of Fake Ship Registries Shielding Iranian Shadow Fleet

The US Department of the Treasury sanctioned on November 4 an India-based network dedicated to issuing fraudulent ship registrations and maritime certifications that helped Iran's shadow fleet evade international sanctions. The action, part of Operation Economic Outcast, targets Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, identified as the ringleaders of the scheme.

According to the Treasury, the network impersonated maritime authorities from various countries to offer vessel registration, crew certification and classification services through websites designed to mimic legitimate ship registries. The scheme dates back at least to 2014, when Sharma and Shahid attempted to pose as the flag administration of Dominica, later expanding the operation by invoking the names of countries such as Guyana, Eswatini, Laos, Aruba, Nicaragua, Sint Maarten, Mali, Mozambique, Malawi and Timor-Leste.

Among the vessels identified by the Treasury is the sanctioned tanker PING SHUN (IMO 9231901), which had carried cargoes of Iranian oil. Also mentioned is the MAJESTIC X, formerly named PHONIX (IMO 9198317), seized by US military forces on April 22 while transporting Iranian crude under a fraudulent Guyanese flag. The network is also said to have provided false flags to the sanctioned tankers LATTAFA, BINARY STAR and VERA.

The designations cover Sharma, Shahid and their associates Ashwani Kumar Dhiman and Ishwinder Singh, as well as nine affiliated companies, including Oceaniek Technologies India, Aryavart Ship Management Private Limited and Eswatini Maritime Affairs and International Ship Registry, the latter set up by Sharma in Singapore in 2023 despite having been publicly disavowed by the government of Eswatini.

Alongside the sanctions, the Office of Foreign Assets Control (OFAC) issued an advisory to the maritime industry warning that companies providing services to vessels flying fraudulent flags could face sanctions exposure. The agency urged insurers, banks and other service providers to step up due diligence in the face of red flags indicating false registration, such as discrepancies between the declared flag and the country code of the MMSI number, and noted that vessels with fake registrations lack valid insurance coverage. According to cited data, as of April the International Maritime Organization had recorded 529 vessels flying false flags over the prior year, affecting nearly 40 member states.