UAE Protects Iranian Oil Trader from U.S. Sanctions to Strengthen Ties with Tehran
Bloomberg Reveals UAE Protects Iranian Oil Trader from US Sanctions in Exchange for Closer Ties with Tehran and Limiting Houthi Attacks
The international agency Bloomberg has revealed that UAE authorities are protecting an Iranian oil trader from US sanctions in exchange for closer relations with Tehran and efforts to curb attacks by the Houthi group, Ansar Allah.
According to the agency, Hossein Shamkhani utilized “citizenship-by-investment” programs to access the international banking system—a position he maintained through connections in both the UAE and Washington.
Along a winding road by the palm-lined beaches of Dominica stands a series of unfinished luxury hotels. A few miles north, the future site of Portsmouth Marina lies—a project aimed at attracting luxury yachts to the island.
These projects represent a bet made by Dominica three decades ago on its “citizenship-by-investment” (CBI) program. Simply put, this small Caribbean nation offers passports to foreigners in exchange for large sums of money. This program has brought billions of dollars into the country’s economy, while providing an easy secondary nationality for anyone whose origins may raise questions in the financial world.
Among the clients benefiting from this program is Iranian Hossein Shamkhani, the secret leader of a business empire handling strategic oil and arms deals for Tehran and Moscow, according to individuals familiar with the matter, who requested anonymity to discuss confidential operations.
Shamkhani and his team’s acquisition of Dominican documents was part of a series of steps that enabled Iranians to gain broad acceptance, including from Wall Street banks and major Western oil companies. Shamkhani, whose father holds the position of senior advisor to Supreme Leader Ayatollah Ali Khamenei, has made considerable efforts to keep his business dealings secret.
An Empire at the Heart of the Western Financial System
This story is based on interviews with more than 50 people familiar with his network and the results of an investigation that lasted for a year. The story explains how Shamkhani succeeded in integrating his empire’s companies into the fabric of the Western financial system, even when key entities within his network dealt with Iranian weapons shipments to Russia.
His operations span from London to Geneva, Dubai, and Singapore, securing relationships with some of the biggest names in global finance. Shamkhani’s lawyer, who has repeatedly denied Bloomberg’s reports on his business activities, did not respond to specific questions for this story.
The story includes countries like Malta and Cyprus, which are famous destinations for obtaining citizenship-by-investment, and involves senior officials in the UAE, a prominent lobbying firm near the US Treasury Department in Washington, and a covert logistics network transporting billions of dollars worth of Iranian and Russian oil across oceans.
Shamkhani’s Origins
Shamkhani was born in Tehran a few years after the Iranian Revolution and grew up during the Iran-Iraq war. His father held several high-ranking government positions—ranging from naval commander in the Iranian Revolutionary Guard to Minister of Defense—before becoming the Secretary of the Supreme National Security Council of Iran.
Encouraged by his father, Shamkhani the son embarked on a career path in the private sector. After studying in Moscow and Beirut, he returned to Iran to obtain a Master’s in Business Administration and then founded, with his brother Hassan, a trading company called Admiral Group, named after his father’s naval title.
In Dubai, located across the Gulf and home to a large Iranian community, Shamkhani found a suitable base for his business. However, due to his father’s positions and his nationality, Shamkhani was a politically exposed figure, subject to scrutiny and connections with sanctioned entities—raising red flags with most major banks.
Dominica provided a solution. The country, roughly the size of New York City and with a population of about 70,000, has been running one of the world’s most flexible citizenship-by-investment programs since the early 1990s.
According to Christine Surak, a professor at the London School of Economics, this program does not require physical presence, and deals are often conducted through private intermediaries in Dubai.
For a fee, Shamkhani and several of his partners obtained Dominican passports, according to sources familiar with the matter, as well as business documents and records reviewed by Bloomberg.
That wasn’t enough. Many banks required a second form of identification under basic “Know Your Customer” (KYC) guidelines. Iranian identity cards were insufficient. To alleviate these concerns, Shamkhani and his team used Dominican documents to acquire additional passports from European Union countries like Malta and Cyprus.
With multiple identities and alternative nationalities, Shamkhani’s network was able to pass compliance checks at some of the biggest names in international finance.
Global Expansion
Shamkhani’s commercial empire saw significant growth over the past decade, with billions of dollars in oil revenue flowing through his network annually, disappearing into a maze of bank accounts, offshore companies, and luxury real estate.
In Dubai, he used family connections when needed, while adopting a new identity under the alias “Hector” when dealing with bankers.
In January 2020, U.S. sanctions on his father added a new challenge. This led Shamkhani to withdraw large sums from his investment funds and purchase luxury properties, most of them in exclusive projects in Dubai.
Shamkhani benefited from Emirati support, as some Emirati officials expressed their opposition to the U.S. sanctions against him, due to his father’s role in improving relations between Tehran and Abu Dhabi.
He organized a political influence campaign targeting Western officials to maintain his businesses, relying on firms like “Corvis” that provided consultancy to ease the pressure on his companies.
However, in recent weeks, many of Shamkhani’s companies in Dubai have been suspended, and U.S. investigations are focusing on his financial network. With the new Trump administration coming into power, stricter sanctions are expected.
