Singapore, Malaysia to get visit from US treasury official to discuss sanctions on Iran, and Russian oil

The US Treasury Department’s top sanctions official will travel to Singapore and Malaysia next week, a source familiar with the matter told Reuters, as Washington seeks to combat funding for Iran and its proxy groups as well as evasion of its sanctions on Russia.

The source, speaking on condition of anonymity, said there has been an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system.

During the visit, first reported by Reuters, Treasury’s undersecretary for terrorism and financial intelligence, Brian Nelson, is expected to discuss US concerns and the sanctions risk such activity poses, the source said. Treasury’s general counsel, Neil MacBride, will also be on the trip.

The visit comes as Treasury has increased its focus on terrorist financing through Southeast Asia, including through fundraising efforts and illicit Iranian oil sales, the source said.

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The Treasury Department in December imposed sanctions on four Malaysia-based companies it accused of being fronts supporting Iran’s production of drones.

Washington has recently imposed further sanctions targeting Iran, including over Iranian drones used by Russian in the war in Ukraine, as the US has sought to ratchet up pressure on Tehran after its attack on Israel.

While in Singapore, Nelson will discuss the enforcement of a G7-led price cap on Russian oil as well as cutting off the transshipment of critical dual-use goods, those which have both civilian and military purposes, said the source.

The United States and its allies have imposed sanctions on thousands of targets since Russia invaded neighbouring Ukraine. The war has seen tens of