Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin

Bloomberg has reported that the Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.

The people, who requested anonymity because the information isn't public, said the emirate’s finance hub acted against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators.

In recent days, both firms appeared in the DIFC free zone registry as " inactive—suspended.” The registry doesn’t reflect the start date for the suspensions.

It’s unclear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees. Still, many others remain active, according to people with direct knowledge of the matter who declined to be named and spoke about private matters. The people said that the DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it.

The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they should be allowed to continue. Meanwhile, they’re not allowed to operate. The suspension can be reversed if authorities are satisfied with the additional information provided.

Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., have also appeared in recent days in the DIFC registry as “inactive—suspended.”

A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.

It is reported that a spokesman for Ocean Leonid said in a statement:-

• The company has filed its “formal notice of objection with the DIFC Registrar.”
• “OL is in active discussions with the DIFC to provide all information required by the DIFC on all areas of interest to them relating to OL,”  
• The company fully complies with all relevant laws and regulations. It has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership, which is ISFAD Fund LP.
• Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC so that the suspension is lifted based on actual documentary evidence established under law.”

Bloomberg News reported on Oct. 24 that Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva, and Singapore.

A spokesman for Ocean Leonid said earlier this month that the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.

A lawyer for Shamkhani said his client has no relationship with Milavous or Ocean Leonid.

In August, Bloomberg News reported on Shamkhani's role in the world of Iranian and Russian oil trading. His father is a senior adviser to Iran’s Supreme Leader, Ayatollah Ali Khamenei, and Milavous is said to be operating as one of the parent firms in his network.

The stories are part of a year-long investigation that involves interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. According to people familiar with the matter, the US has taken steps to crack down on the trading network.

Shamkhani has denied most of the details in the Bloomberg reports, including owning any oil company, controlling a trading network, or having a firm involved in commodities deals with Iran or Russia.

Source

https://www.bloomberg.com/news/articles/2024-10-30/dubai-s-difc-suspends-firms-said-to-be-key-to-iran-oil-kingpin