An investigation by Bloomberg reported that Hossein Shamkhani, son of Iran’s former national security chief, circumvented sanctions using Dominican and EU passports. The scheme allowed him and associates to access global banking despite ties to sanctioned entities. The feasibility of such actions raises concerns regarding the effectiveness of citizenship by investment regulations.
A recent investigation by Bloomberg has revealed that Hossein Shamkhani, the son of Iran’s former national security chief, utilized Dominican and European Union (EU) passports to evade international sanctions and gain access to global banking systems. This investigation, published on December 30, 2024, indicated that Shamkhani and his associates procured Dominican passports, subsequently facilitating the acquisition of EU passports, thus allowing them to bypass compliance checks imposed by leading financial institutions.
The report elaborated on how Shamkhani’s acquisition of Dominican documentation enabled him to gain acceptance among major players in the finance and oil industries, despite his history of involvement in arms dealing with Russia. Bloomberg detailed Shamkhani’s educational background and his establishment of the Admiral Group trading firm, which he intended to operate from Dubai due to its favorable business environment. However, his connections to sanctioned entities and political exposure raised concerns among banks, prompting him to seek alternative identities through Dominica’s Citizenship by Investment (CBI) program.
Dominica has long operated a flexible CBI program that has reportedly generated billions for the economy, allowing individuals to secure citizenship without physical presence on the island. Reports indicated that Shamkhani paid for Dominican passports, which were subsequently used to secure additional EU travel documents. By presenting multiple aliases and nationalities, Shamkhani’s network was able to pass the due diligence checks normally required by significant international banks that would typically scrutinize their connections to Iran.
The investigation also uncovered that other Iranian nationals, such as ship captain Alireza Derakhshan, hedge fund executive Mahdiyar Zare Mojtahedi, and associate Hossein Ghorbanizahed, also benefited from Dominican citizenship, collectively transforming their business operations into a significant multi-billion-dollar enterprise.
Despite inquiries, representatives from the governments of Dominica, Cyprus, and Malta did not respond, nor did those implicated in the investigation, highlighting concerns regarding transparency within such international financial dealings.
The investigation centers around the practices employed by individuals linked to high-profile positions within the Iranian government to circumvent international sanctions through the use of citizenship by investment programs. Dominica’s CBI program has attracted significant attention for its less stringent regulations, allowing individuals with potentially problematic backgrounds to secure alternative citizenship and gain easier access to the international financial system. This phenomenon raises critical questions about the efficacy of regulatory measures designed to prevent financial crimes and the integrity of national citizenship programs.
The findings of this investigation underscore the potential for citizenship by investment programs to be exploited by individuals seeking to bypass international sanctions and gain access to global financial services. The case of Hossein Shamkhani illustrates a broader issue within international finance regarding the monitoring of clients’ backgrounds. As such schemes continue to evolve, further scrutiny and regulatory oversight may be necessary to safeguard against the misuse of such citizenship programs.
Original Source: whistleblower.org
