China's Huawei Technologies effectively controlled Iran-based Skycom Tech Co and acted to cover up its relationship, according to internal Huawei and Skycom documents. This counters Huawei's claim that the Iranian firm was just a business partner. Huawei dissolved Skycom in 2013 after Western banks expressed concerns that Huawei's relationship with the Iranian company violated economic sanctions on Iran. Huawei then transferred Skycom's past contracts to a new Iranian company under its control, Huawei Technologies Service. These revelations may support a case in which the United States is seeking to extradite the Huawei executive Meng Wanzhou from Canada for violating sanctions on Iran. Canadian authorities arrested Meng in December 2018 and a judge recently rejected an argument that the U.S. charges against her do not constitute a crime in Canada.
News Briefs
May 25, 2020
Two banks owned by Iran’s armed forces, Mehr Eghtesad Bank and Hekmat Iranian Bank, will be merged into Sepah Bank. Mehr Eghtesad Bank was established in 1993 as Basijian Fund to provide banking services to Basiji paramilitary force members. It had an accumulated lost in 2018 of $106 million. Three other banks owned by the Iranian police will be merged with Sepah in the future, including Ghavvamin, Ansar, and the Samen Institute of the Islamic Revolution Guards Corps. Bank Sepah has been sanctioned by the United States for providing commercial and financial support to Iran's missile program.
-- Radio Farda
May 25, 2020
A tanker called "Fortune" carrying Iranian oil has reached Venezuela. It is expected to be followed by four additional tankers, delivering a total of 1.5 million barrels of oil from Iran. The United States criticized the transaction but did not say whether the U.S. intended to block or sanction future shipments.
-- New York Times
May 19, 2020
The U.S. Justice Department charged the Iranian online financial services company Payment24 and two of its executives, Seyed Sajjad Shahidian and Vahid Vali, with conspiracy to commit offenses against the United States, money laundering, identity theft, and wire fraud. According to an indictment unsealed in a federal court in Minnesota, the charges relate to transactions conducted with U.S. companies between 2009 and 2018, in violation of U.S. economic sanctions. The transactions involved purchases of computer software, software licenses, and computer servers. To execute the scheme, Shahidian and Vali misrepresented the destination of the purchases to U.S. companies. Shahidian was extradited from the United Kingdom to the United States and Vali remains at large.
-- The Wall Street Journal
May 10, 2020
An anti-ship missile fired from an Iranian Navy frigate struck another naval vessel in a friendly fire episode during military exercises in the Sea of Oman, killing 19 sailors and wounding 15. The frigate, called the Jamaran, struck the vessel, called the Konarak, which was guiding the intended target out to the sea. The Konarak was not at an adequate distance from the intended target when the missile was fired. According to Iran's Navy, the incident is under investigation.
-- New York Times
May 7, 2020
The Senate failed to override U.S. President Donald Trump’s veto of a bipartisan war powers resolution. The vote was 49-44, falling short of the 67 votes needed to override the president's veto. The resolution would have required the president to obtain congressional approval for military action against Iran through a declaration of war or a specific authorization for the use of military force. Senator Kaine (D-VA) introduced the bi-partisan legislation shortly after a U.S. strike killed Iranian General Qassem Soleimani, sparking heightened fears of conflict with Iran.
May 7, 2020
The United States is removing four Patriot anti-missile systems from the Middle East, including two that were guarding oil fields in Saudi Arabia. In addition, dozens of U.S. military personnel that were temporarily deployed to the region last year will be moved. The United States previously removed two jet fighter squadrons from the region and is considering reducing its naval presence. U.S. officials say that the moves mark the end of a year-long military buildup to counter Iran.
-- Wall Street Journal
May 5, 2020
According to an International Atomic Energy Agency (IAEA) Safeguards Implementation Report covering inspections in 2019, IAEA staff spent 1,103 person-days on the ground in Iran completing over 400 inspections. The Agency also conducted 33 "complementary access" or surprise visits to sites in Iran. On-site inspections were bolstered by current and historical satellite imagery, which the report described as "extensive and timely." The IAEA has 269 monitors and analysts focused on Iran.
-- Bloomberg
May 2, 2020
The U.S. Department of Justice charged two Iranian nationals, Amir Dianat and Kamran Lajmiri, with money laundering and sanctions violations. Prosecutors allege that the two laundered money through a network of front companies to buy a petroleum tanker, the Nautic, to transport Iranian oil. The scheme allegedly involved the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and the National Iranian Oil Company (NIOC). According to prosecutors, the defendants used Mr. Dianat’s company Taif Mining Services LLC to buy the tanker, but $10 million of the payment was frozen by a U.S. bank because of money laundering and sanctions concerns. The seller later obtained a civil court order that allowed authorities in the United Arab Emirates to seize the tanker. U.S. prosecutors also filed a civil forfeiture complaint in an effort to reclaim the $12.3 million used to purchase the tanker. Separately, the U.S. Department of the Treasury blacklisted Mr. Dianat and Taif Mining Services LLC. Dianat and Lajmiri remain at large and could face up to 20 years in prison if convicted.
-- Wall Street Journal
April 28, 2020
The United States is circulating a draft U.N. resolution that would indefinitely extend an arms embargo on Iran beyond its current October 2020 expiration. According to U.S. officials, the resolution will be presented for a vote in May. Russia and China, who have expressed interest in resuming arms sales to Iran, are likely to oppose the resolution. According to the officials, the Trump administration is not currently planning to invoke the “snapback” of U.N. sanctions, despite its assertion that the United States retains this right as an original participant in the Joint Comprehensive Plan of Action (JCPOA).
-- Associated Press