Sanctions Evasion Reference

MID-SHIP Group: payments connected to blocked vessels

A New York shipping agency paid $871,837 in 2019 over five funds transfers totalling about $472,861 that related to vessels identified on the SDN List after their operator was designated.

period

2011–2019

outcome

Settlement

parties

MID-SHIP Group LLC; Islamic Republic of Iran Shipping Lines

programmes

Islamic Republic of Iran

reviewed

2026-08-20

Penalties imposed

AuthorityDate AmountNote
OFAC 2019-05-02 $871,837 Egregious and not voluntarily self-disclosed; five apparent violations

A small settlement that teaches the maritime identifier problem better than any large one.

OFAC’s enforcement information for 2 May 2019 records that between about 18 February and 14 November 2011, MID-SHIP processed five electronic funds transfers totalling approximately $472,861 relating to payments associated with blocked vessels identified on the SDN List. OFAC had designated Islamic Republic of Iran Shipping Lines in September 2008 under the proliferation authority.

The identifier point

Vessels are listed on the SDN List by name and IMO number. Names change; IMO numbers do not.

An agency processing payments for a voyage deals with the vessel as it is currently named on the charter, the bill of lading and the invoice, and screening that name against the list will not match if the ship has since been renamed. Screening the IMO number will.

That single fact is why the maritime advisories put such weight on the IMO number, why designation entries carry it, and why physical alteration of the marking is treated as a strong indicator rather than a clerical matter.

Why the penalty exceeded the transaction value

The five transfers totalled about $472,861 and the settlement was $871,837. OFAC determined the apparent violations were egregious and not voluntarily self-disclosed, and both the statutory maximum and base penalty amounts were $1,490,320.

Sanctions penalties are calculated per violation against a statutory maximum, not as a proportion of the sums involved, which is why small-value conduct can attract penalties well above the amounts transferred.

Techniques this case demonstrates

Programmes and jurisdictions in this case

  • Iran sanctions — A layered set of US, EU and UN measures dating from 1979 and substantially rebuilt after 2018, covering energy, finance, shipping, and proliferation-related procurement.

Enforcement documents and sources

  1. Enforcement action: MID-SHIP Group. U.S. Department of the Treasury, Office of Foreign Assets Control, 2019. Penalty notice, 2019-05-02, US$871,837.
  2. Guidance to Address Illicit Shipping and Sanctions Evasion Practices. U.S. Department of State, U.S. Department of the Treasury and U.S. Coast Guard, 2020. Global maritime advisory, 14 May 2020.
  3. North Korea Vessel Advisory: Sanctions Risks Related to Shipping with North Korea. U.S. Department of the Treasury, Office of Foreign Assets Control, 2018.

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