A top U.S. Treasury sanctions official will travel to Singapore and Malaysia next week, a source acquainted with the matter told Reuters, as Washington seeks to crack down on the financing of Iran and its proxy groups, in addition to the evasion of sanctions on Russia.
The source, who spoke on condition of anonymity, said there was a rise in money flows to Iran and its proxies, including Hamas, through the Malaysian economic system.
During the visit, which was first reported by Reuters, Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson is predicted to debate U.S. concerns and the sanctions risks posed by such activity, the source said. Treasury General Counsel Neil MacBride may also be on the trip.
The visit comes as Treasury increases its concentrate on terrorism financing in Southeast Asia, including through fundraising and the illegal sale of Iranian crude oil, the source said.
In December, the Treasury Department imposed sanctions on 4 Malaysian firms it accused of being fronts supporting Iran’s drone production.
Washington recently imposed further sanctions on Iran, including over Iranian drones utilized by Russia in its war in Ukraine, because the United States sought to extend pressure on Tehran following its attack on Israel.
While in Singapore, Nelson will discuss the G7-led enforcement of a price cap on Russian oil, in addition to cutting off the transshipment of key dual-use goods which have each civilian and military purposes, the source said.
The United States and its allies have imposed sanctions on hundreds of targets since Russia invaded neighboring Ukraine. As a results of the war, tens of hundreds of individuals died and cities were destroyed.
Since then, Washington has sought to crack down on evasion of Western measures, including the shipment of dual-use goods by third countries to Russia.
Singapore is a significant shipping hub. Insurers and other marine services providers operating in Singapore have warned against dodging the value cap on Russian crude, complaining that it’s difficult to verify that documents promising to purchase oil at prices of $60 or less are accurate.
The G7 price cap on Russian crude oil, imposed in December 2022, is meant to cut back Russia’s available revenues for the war in Ukraine by allowing the West to supply insurance and other services just for cargoes priced below $60 a barrel.
