Controversial Bloomberg Report on How Shamkhani's Son Infiltrated the International Banking System

Bloomberg reports that Hossein Shamkhani, son of Ali Shamkhani, a close official to Ali Khamenei, has utilized citizenship programs through investment in Dominica and a lobbying firm in Washington to circumvent sanctions and reap substantial economic benefits, including purchasing properties abroad. According to the report published on Monday, December 31, Hossein Shamkhani gained access to the international banking system through Dominica citizenship and maintained this access through channels established in the UAE and Washington. The small Caribbean nation of Dominica has issued passports to foreigners in exchange for significant payments, injecting billions into its economy and easily granting second citizenship to individuals whose primary nationality may pose challenges. Among the clients willing to participate in this six-figure program were a group of Iranians, including Hossein Shamkhani, who Bloomberg states leads strategically important businesses in oil and arms for the Islamic Republic and Moscow. Based on information from individuals directly familiar with his activities, Shamkhani also heads an investment fund operating in global financial centers. Obtaining Dominica citizenship was one of the steps that allowed this group of Iranians to gain widespread acceptance from banks and major Western oil companies. Hossein Shamkhani, whose father is a senior advisor to Ali Khamenei, has made significant efforts to keep his business interests confidential. This Bloomberg report, summarized by VOA, is based on interviews with over forty individuals familiar with Shamkhani's network and the results of a year-long investigation, showing how he managed to integrate his companies into the structure of the Western financial system. Key entities in Hossein Shamkhani's network have been responsible for delivering Iranian weapons to Russia. His network has operated from cities such as London, Geneva, Dubai, and Singapore, establishing relationships with some of the biggest names in the financial world. Shamkhani's lawyer, who has consistently denied Bloomberg's reports regarding his business activities, has not responded to the questions raised in this report. Alongside Shamkhani, other Iranians who received Dominica passports include a ship captain named Alireza Derakhshan, nicknamed 'Captain D,' who collaborates with the Milos Group; Mahdiar Zareh Mojtahedi, the senior manager of the Ocean Leonid investment fund; and Hossein Ghorbani Zadeh, a senior associate at the Golden Nest Group, who helped Shamkhani establish global banking relationships. In July 2023, the UK revoked visa-free travel for Dominica passport holders, raising alarms for the citizenship by investment industry in this Caribbean nation. Meanwhile, the European Parliament discussed halting such programs due to fraud and inadequate oversight. Sophie in 't Veld, a senior member of the European Parliament from the Netherlands, stated, 'This program should be banned,' as it 'is a red carpet to Europe.' The Dominica program served as a platform for Shamkhani and his associates to transform the 'Admiral Group' into a multi-billion dollar business empire encompassing dozens of companies. The Admiral Group refers to a commercial company founded by Hossein Shamkhani and his brother Hassan. According to the report, this name was chosen in honor of their father's military title, as he served as the commander of the Islamic Revolutionary Guard Corps Navy and later as a senior official in the Iranian government. According to data published by the 'Government Accountability Project,' Alireza Derakhshan obtained Dominica citizenship in 2009. The Government Accountability Project is a non-profit organization aimed at exposing corruption, supporting whistleblowers, and promoting transparency and accountability in public and private institutions. His name is also seen in a business registry in Turkey as a Dominica citizen. In the UK, corporate documents show that Zareh Mojtahedi and Ghorbani Zadeh are also registered as Dominica citizens. In all these cases, there is no mention of Iran in the documents. According to the report, based on a database of real estate in Dubai compiled by a Washington-based non-profit research organization, at least two villas in Jumeirah, known as the 'Billionaire's Island,' have been purchased by members of Shamkhani's network. Bloomberg states that in private discussions with American counterparts, some Emirati officials, including Yousef Al Otaiba, the influential UAE envoy in Washington, expressed their opposition to sanctions targeting Shamkhani. Furthermore, some officials in the Biden administration have privately acknowledged that keeping oil prices low and avoiding a trade war with China have taken precedence over dealing with prominent figures in Iran's oil market, such as Shamkhani. The report also identifies a Washington-based lobbying firm named Corvus as a key player in Hossein Shamkhani's influence campaign to protect his business interests. Bloomberg states that Corvus has played a significant role in Shamkhani's efforts by providing strategic advice and facilitating negotiations with American officials. The mention of this company among American observers of Iranian affairs has sparked considerable reactions. Bloomberg writes that Corvus has not disclosed its connection to Shamkhani's activities under the Foreign Agents Registration Act in the US, raising concerns in the United States about how influential individuals use lobbying firms to conceal influence and circumvent legal oversight.