A Bloomberg investigation reveals that Hossein Shamkhani, son of Iran’s former national security chief, exploited Dominican and EU passports to evade sanctions. The report outlines how he acquired citizenship through Dominica’s CBI program to access international banking, despite his alleged ties to arms dealing. The findings call attention to the potential vulnerabilities in global financial practices and citizenship schemes.
Recent revelations from a Bloomberg investigation disclose that Hossein Shamkhani, the son of Iran’s former national security chief, utilized Dominican and EU passports to circumvent international sanctions. The report, published on December 30, 2024, describes how Shamkhani and his associates initially acquired Dominican passports to subsequently obtain EU documents from Malta and Cyprus, facilitating evasion of compliance checks imposed by global financial institutions.
Despite being implicated in arms dealings with Russia, Shamkhani leveraged this clever strategy to gain access to the international banking system, significantly expanding the acceptance of his business dealings, even among major Wall Street banks and Western oil corporations. The investigation highlighted Dominica’s Citizenship by Investment (CBI) program, which has generated billions for the economy while granting nationality to individuals with potentially concerning backgrounds in finance.
Having studied in Moscow and Lebanon, Shamkhani returned to Iran for his MBA and launched Admiral Group. However, due to his family’s political background, he faced obstacles in establishing his business in Dubai, prompting his reliance on the Dominican CBI program. This program allowed Shamkhani and his associates—including notable figures from the shipping and investment sectors—to acquire Dominican citizenship easily, further assisting them in securing EU passports.
Bloomberg noted that Shamkhani and his network used their Dominican passports to mask their Iranian identities, thus bypassing rigorous banking regulations that typically flag politically exposed persons associated with sanctioned entities. This maneuver enabled them to cultivate substantial banking relationships and transform Admiral Group into a multi-billion-dollar enterprise.
The investigation underscores the vulnerabilities within citizenship programs and the ease with which individuals can bypass legal and regulatory frameworks by strategically acquiring new nationality documents. Subsequent to the investigation, inquiries made to the governments of Dominica, Cyprus, and Malta remained unanswered, reflecting the complex and opaque nature of international finance and citizenship practices.
The topic of this investigation revolves around the use of Citizenship by Investment (CBI) programs that allow individuals to obtain citizenship in exchange for a financial contribution to a country. Such programs, which have been operational in certain countries since the early 1990s, often attract substantial investments and foreign nationals looking for greater mobility. However, these programs have come under scrutiny due to concerns about how they may facilitate illicit activities, including evasion of international sanctions. The case of Hossein Shamkhani exemplifies the potential misuse of citizenship programs by politically exposed persons to gain access to global financial systems despite being linked to unsavory activities.
In conclusion, the Bloomberg investigation sheds light on the complexities and potential abuses of Citizenship by Investment programs, particularly as demonstrated by Shamkhani’s use of Dominican and EU passports. It highlights the necessity for rigorous scrutiny of such programs to prevent their exploitation by individuals seeking to circumvent sanctions. The findings stress the crucial need for enhanced compliance measures within financial institutions to identify and address risks associated with politically exposed persons. Ultimately, this investigation serves as a reminder of the ongoing challenges that exist in ensuring the integrity and transparency of global financial systems.
Original Source: whistleblower.org
