Without Malaysia and Singapore, Iran couldn’t shift its sanctioned oil, US official says

Brian Nelson, the US Treasury’s undersecretary for terrorism and financial intelligence, was speaking during a four-day visit to Singapore and Malaysia, which the department said aimed to advance its work in countering financing and revenue generation by Iran and its proxies.

The trip comes as the Treasury increases its focus on financing for militant groups routed through Southeast Asia, including through fundraising efforts and illicit sales of Iranian oil.

Nelson told reporters the US was trying to prevent Malaysia from becoming a jurisdiction where the Palestinian militant group Hamas could both raise funds and then move money.

He said the US saw Iranian oil being transferred near Singapore and throughout the region.

In December last year, the US Treasury imposed sanctions on four Malaysia-based companies it accused of being fronts supporting Iran’s production of drones.

Singapore is a major shipping hub. Insurance and other maritime service providers operating in Singapore have warned of evasion of the price cap on Russian oil, complaining that it is difficult to confirm that paperwork promising oil is bought at or below the US$60 cap is accurate.