-- The U.S. Department of the Treasury warned financial institutions they could be slapped with secondary sanctions if they facilitate transactions with Chinese refineries linked to Iranian crude oil, the department said in a Tuesday filing.
The warning came after Chinese refineries, such as Hengli Petrochemical (Dalian) Refinery, were sanctioned for purchasing crude from Iran.
The department said financial institutions, such as banks, should conduct enhanced due diligence on transactions involving Chinese refineries, especially in Shandong Province.
Treasury cautioned financial institutions to watch out for common evasion tactics such as the use of front companies in Asia and the United Arab Emirates, as well as the use of a "shadow fleet," which employs ship-to-ship transfers, falsified documentation, and vessel identity manipulation.