The Office of Foreign Assets Control today issued an alert for financial institutions on the sanctions risks of dealing with five independent oil refineries in China, also known as “teapot” refineries.
OFAC said the oil refineries pose a sanctions risk due to their “key role” in importing and refining Iranian crude oil. The five refineries “have used the U.S. financial system to conduct U.S. dollar-denominated transactions and to acquire U.S. technology and goods,” according to the alert.
“Financial institutions should take steps to ensure they are not facilitating transactions involving designated teapot refineries, or other teapot refineries that may be importing Iranian oil, because this may expose the financial institutions to sanctions,” OFAC said.
In related news, OFAC designated 35 entities and individuals that oversee Iran’s shadow banking architecture, “facilitating the movement of the equivalent of tens of billions of dollars tied to sanctions evasion and Iran’s sponsorship of terrorism.” These networks allow Iran’s armed forces to access the international financial system to receive payment for illicit oil sales, purchase sensitive components for missiles and other weapons systems, and transfer money to Iran’s terrorist proxies, the agency said.
