7-5-2024 (SINGAPORE) A top U.S. Treasury official has shed light on the pivotal role played by Malaysian service providers in facilitating the movement of Iranian oil throughout the region.
During a four-day visit to Singapore and Malaysia, Brian Nelson, the U.S. Treasury’s Undersecretary for Terrorism and Financial Intelligence, emphasized the United States’ keen interest in preventing Iran from exploiting Malaysian jurisdictions to sustain its oil trade and generate revenue.
Nelson’s remarks came as the Treasury Department intensifies its focus on countering the financing of militant groups operating in Southeast Asia, including those involved in fundraising efforts and the illicit sale of Iranian oil.
“The United States sees Iran’s capacity to move its oil as reliant on service providers based in Malaysia, with oil being transferred near Singapore and throughout the region,” Nelson told reporters, underscoring the strategic importance of the region in disrupting Iran’s sanctions-evasion tactics.
The U.S. official’s visit aimed to advance the Treasury Department’s work in countering the financing and revenue generation by Iran and its proxies, a mission that has taken on heightened urgency amid escalating tensions between Washington and Tehran.
Nelson also addressed the U.S.’s efforts to prevent Malaysia from becoming a jurisdiction where the Palestinian militant group Hamas could both raise funds and move money. This move underscores the broader regional implications of the Treasury Department’s initiatives.
The U.S. has long accused Iran of exploiting illicit oil sales and financial networks to fund its alleged support for militant groups and proxy forces across the Middle East. By targeting the service providers facilitating these transactions, the U.S. aims to disrupt Iran’s ability to generate revenue and finance activities deemed destabilizing to the region.
Nelson’s visit comes on the heels of the U.S. Treasury’s decision in December 2022 to impose sanctions on four Malaysia-based companies accused of serving as fronts supporting Iran’s production of drones. This move highlighted the growing concern over Malaysia’s potential role in enabling Iran’s pursuit of advanced military capabilities.
During his visit, Nelson also addressed the progress made in enforcing sanctions and export controls against Russia in the wake of its invasion of Ukraine. He noted that the Russian oil price cap, implemented to limit Moscow’s ability to profit from oil sales while preserving global energy market stability, was yielding positive results.
Singapore, a major maritime hub, has also drawn attention in the context of enforcing the price cap on Russian oil. Insurance and other maritime service providers operating in the city-state have raised concerns about the evasion of the price cap, citing difficulties in confirming the accuracy of paperwork claiming compliance with the $60 per barrel limit.
