US sanctions Singapore firms over alleged role in Iranian oil smuggling to China

The United States has announced sanctions against more than 20 companies across Asia and the Middle East, accusing them of facilitating oil smuggling operations tied to Iran’s armed forces.

Among the entities named were Singapore’s CCIC Singapore Pte Ltd and Oriental Apple Company Pte Ltd, which Washington alleged played significant roles in disguising Iranian crude shipments to China.

The measures, unveiled by the US Department of the Treasury on 14 May, form part of a broader campaign to curtail what officials describe as Tehran’s “shadow fleet” network of tankers and front companies.

CCIC Singapore accused of falsifying inspections

According to the Treasury Department, CCIC Singapore provided cargo inspection services that enabled the transfer of Iranian oil under false identities and origin certificates.

In late 2024, the firm allegedly inspected a shipment of around two million barrels of oil — valued at over US$130 million at current market prices — from a sanctioned vessel named SIRI.

The oil was reportedly reclassified as Malaysian heavy crude in falsified documentation before being shipped to China. Officials said the vessel’s identity was also concealed during the operation.

In mid-2024, CCIC Singapore allegedly carried out similar services for another sanctioned tanker, the HECATE.

The Treasury further implicated CCIC Singapore’s China-based sister company, Huangdao Inspection and Certification Co Ltd, which was said to have inspected sanctioned tankers from late 2023 through late 2024.

Links to China Certification and Inspection Corporation

Corporate records indicate that CCIC Singapore is a wholly owned subsidiary of China Certification and Inspection Corporation (CCIC, 中国检验认证集团).

The CCIC Group maintains a global presence with more than 40 domestic subsidiaries, 25 overseas subsidiaries, and over 100 sub-branches and offices at major ports and trade hubs.

It employs about 25,000 people worldwide across nearly 300 offices and laboratories.

The latest sanctions highlight Washington’s concerns about international subsidiaries being used to mask oil transfers in contravention of restrictions.

The role of Sepehr Energy

US officials identified Sepehr Energy Jahan Nama Pars Company, an affiliate of Iran’s Armed Forces General Staff, as the organiser of the oil shipments.

The Treasury said Sepehr Energy used a web of front companies across Hong Kong, Singapore, and the United Arab Emirates to transfer crude to independent Chinese “teapot” refineries.

Among the Hong Kong firms named were Xin Rui Ji Trad Co Ltd, Star Energy International Ltd, and Milen Trading Co Ltd.

Between mid-2023 and mid-2024, Sepehr Energy allegedly coordinated storage and delivery of Iranian crude through Chinese ports such as Qingdao and Rizhao.

The proceeds were reportedly channelled back to Iran’s Armed Forces General Staff, overseen by Sepehr Energy officials Elyas Nirumand Toomaj and Mohammad Khorasani Niasari.

Singapore’s Oriental Apple also designated

A second Singapore company, Oriental Apple Company Pte Ltd, was also sanctioned.

The Treasury alleged that it had acted as a buyer and facilitator for small Chinese refineries, receiving large quantities of Iranian oil and conducting transactions through Sepehr Energy’s intermediaries.

Officials said Oriental Apple functioned as a commercial bridge between Iranian suppliers and Chinese independent refiners seeking discounted crude.

Other companies implicated

The US also designated Qingdao Fushen Petrochemical for purchasing over US$138 million in oil from Sepehr Energy affiliates in early 2024.

According to investigators, some transactions were coordinated through Dubai-based officials, underscoring the multinational scope of the network.

Washington characterised the scheme as part of Iran’s broader use of “shadow fleet” vessels, which are often older tankers operating with disabled tracking systems.

These ships are said to carry out illicit transfers in international waters, including the South China Sea, while concealing ownership and insurance details.

Oil revenues funding Iran’s military

The Treasury stressed that revenues from these covert oil trades are being used to finance Iran’s military activities.

These include the development of ballistic missiles and unmanned aerial vehicles, as well as financial support for groups designated as terrorists by Washington.

US Secretary of the Treasury Scott Bessent said the sanctions underscored Washington’s determination to target Iran’s revenue streams.

“The United States will continue targeting this primary source of revenue, so long as the regime continues its support for terrorism and proliferation of deadly weapons,” he said.

Broader sanctions landscape

The designations add to a long-standing series of US measures against Iran’s energy sector, which has been under sanctions since the US withdrew from the Joint Comprehensive Plan of Action (JCPOA) in 2018.

While Iran has managed to maintain significant oil exports, largely to China, Washington has repeatedly sought to disrupt the networks facilitating such flows.

Industry analysts note that the inclusion of Singapore-based firms in the latest sanctions highlights the global reach of these operations. It also signals a warning to companies operating in major trade hubs about potential exposure to secondary sanctions.

Implications for Singapore

Singapore has long positioned itself as a compliant jurisdiction in the enforcement of international sanctions.

The involvement of CCIC Singapore and Oriental Apple in the US designations may draw attention from regulators to potential vulnerabilities in the city-state’s oversight of trade-linked firms.

Observers say the case illustrates how companies with global networks and complex corporate structures can be exploited for illicit trade flows.

Singapore authorities have not yet issued a public statement in response to the US Treasury’s announcement.