US Targets India-Based Maritime Network Over Alleged False Flag Support for Iranian Oil Tankers

The United States has imposed sanctions on an India-based network accused of providing fraudulent flag registrations and maritime certifications to vessels involved in transporting Iranian petroleum.

The action highlights a growing enforcement focus on the organisations operating behind the scenes of the global shadow fleet, with implications for shipowners, flag administrations, classification societies, insurers and seafarers.

US Alleges Maritime Fraud Network Operated from India

The US Department of the Treasury has sanctioned an alleged maritime services network led by Indian nationals Suniel Kumar Sharma and Jaspreet Preeti Shahid.

According to the US authorities, the husband-and-wife team operated from Chandigarh, India, and allegedly supplied false flag registrations and maritime certifications to vessels linked to Iranian oil transportation and sanctions evasion.

The sanctions also cover their company, Aryavart Ship Management Private Limited, and the Singapore-based Eswatini Maritime Affairs and International Ship Registry.

The Treasury alleges that the network established or impersonated maritime authorities and certification organisations associated with several jurisdictions, including Aruba, Guyana, Mali, Mozambique, Malawi, Sint Maarten and Timor-Leste.

The organisation known as Eswatini Maritime Affairs and International Ship Registry is particularly significant. Although it claims to provide maritime registration services, the US says it is operated from Singapore and has been publicly disavowed by Eswatini authorities.

The allegations point to a wider problem in maritime governance: the use of unauthorised organisations to make vessels appear legally registered and certified when the relevant flag state has not approved those arrangements.

A Decade-Long Operation Under Scrutiny

The US Treasury alleges that the network's activities date back to at least 2014, when Sharma reportedly attempted to impersonate Dominica's maritime flag authority.

The alleged operating model involved purchasing internet domains and establishing websites that appeared to represent legitimate national maritime administrations.

These websites reportedly offered services such as:

• Vessel flag registration
• Seafarer training and certification
• Maritime documentation
• Vessel classification services

Such services are normally provided by recognised flag administrations, approved organisations and legitimate maritime institutions operating under established international standards.

The US claims Sharma established the Eswatini Maritime Affairs and International Ship Registry in 2023. Despite Eswatini's public rejection of the organisation, the network allegedly continued to provide registration services to vessels transporting Iranian petroleum.

The Treasury also identified multiple active websites that it says are connected to the network and falsely present themselves as legitimate maritime registries.

The case illustrates how digital infrastructure can be used to create an appearance of regulatory legitimacy in international shipping, potentially complicating efforts to identify vessels involved in sanctions evasion.

Operation Economic Outcast Expands Sanctions Enforcement

The latest designations form part of the US Treasury's broader initiative, known as Operation Economic Outcast, launched in August 2026.

The operation aims to disrupt the networks supporting Iran's shadow fleet, including tanker operators, financial intermediaries, maritime service providers and other facilitators involved in moving Iranian oil while evading sanctions.

The Treasury says it is coordinating with international partners, including the European Union, the United Kingdom and Gulf states, to identify the financial channels and maritime networks used to support Iranian petroleum exports.

Alongside the sanctions, the Treasury's Office of Foreign Assets Control (OFAC) has issued a new alert to the maritime industry concerning the risks of dealing with falsely flagged vessels.

The alert reinforces previous guidance urging maritime stakeholders to conduct appropriate due diligence on vessel registration, flag documentation and the organisations providing maritime services.

In a separate action, OFAC also sanctioned Turkey-based Fugo Ground Services over its alleged continued support for Iran's aviation sector.

The Treasury reiterated that organisations supporting Iran's sanctioned activities could face serious consequences.

Why this matters

• For shipowners and operators: Vessel registration documents must be verified directly with legitimate flag administrations. A seemingly valid certificate may not establish that a vessel is lawfully registered.
• For seafarers: Crew members serving on vessels with questionable registration or ownership structures could face operational uncertainty, port restrictions and complications during inspections or crew changes.
• For insurers, charterers and maritime service providers: False flag registrations create additional sanctions-compliance risks. Screening must extend beyond vessel names and ownership to include flag authorities, certification providers and associated companies.
• For the maritime industry: The case highlights vulnerabilities in the international ship-registration system and the importance of reliable flag-state oversight and recognised certification procedures.

Conclusion

The US sanctions demonstrate that maritime sanctions enforcement increasingly extends beyond tankers to the service networks that enable vessels to operate under questionable identities.

For the global shipping community, verifying the legitimacy of flag registrations and maritime certificates is becoming an essential part of operational risk management and sanctions compliance.