A Bloomberg investigation reveals that Hossein Shamkhani, son of Iran’s ex-national security chief, utilized Dominican and EU passports to circumvent sanctions. By exploiting Dominica’s Citizenship by Investment program, Shamkhani could access the international banking system, despite ties to arms dealings. The investigation highlights compliance failures in financial institutions and raises concerns about the implications of such citizenship schemes for global finance.
An investigative report by Bloomberg has uncovered how Hossein Shamkhani, the son of Iran’s former national security chief, employed Dominican and European Union (EU) passports to circumvent international sanctions. According to the findings, published on December 30, 2024, Shamkhani and his associates initially acquired Dominican citizenship through its Citizenship by Investment (CBI) program, which they then leveraged to obtain EU passports from Malta and Cyprus. This strategic maneuver enabled them to gain access to the international banking system, despite Shamkhani’s alleged connections to arms dealings in Iran.
Shamkhani, who established a trading enterprise named Admiral Group, was influenced by his father’s significant political roles in Iran, particularly within the Islamic Revolutionary Guard Corps. The report highlights Dominica’s CBI program as a pivotal mechanism for those deemed politically exposed, offering a pathway to legal residency without physical presence, thereby facilitating anonymity for individuals with questionable backgrounds.
Bloomberg’s year-long investigation, backed by interviews with numerous sources, criticized the lax compliance protocols at leading financial institutions, revealing how Shamkhani’s Iranian identification documents failed to satisfy basic due diligence requirements. To overcome these hurdles, he utilized his Dominican passports to secure EU passports, permitting him to navigate potential obstacles posed by banks wary of sanctioned backgrounds.
Several Iranian nationals associated with Shamkhani similarly acquired Dominican citizenship, underscoring a broader trend where such documents serve as a means to transform under-regulated financial pathways into robust business operations. Shamkhani’s ventures reportedly expanded into a multi-billion dollar entity, benefiting significantly from Dominica’s flexible CBI approach while raising concerns about global compliance standards.
Despite attempts to reach representatives from the involved governments for comment, responses were notably absent, reflecting the complexity of this evolving international situation.
The article discusses a recent investigation conducted by Bloomberg regarding the circumvention of international sanctions by Iranian nationals, particularly highlighting Hossein Shamkhani’s acquisition of Dominican and EU passports. As the son of a former Iranian national security chief, Shamkhani’s actions exemplify how Citizenship by Investment programs can be exploited to gain acceptance in global financial systems. The investigation sheds light on the implications of such practices for international compliance and regulatory measures.
In conclusion, the investigation reveals significant gaps in the compliance measures of major financial institutions, underscoring how individuals, particularly with ties to sanctioned nations, can utilize citizenship programs to access global markets. The case of Hossein Shamkhani serves as a cautionary tale about the potential abuse of Citizenship by Investment schemes, challenging the integrity of international banking systems and raising essential questions about regulatory oversight.
Original Source: whistleblower.org
