Written by Daphne Psaledakis
WASHINGTON (Reuters) – The U.S. Treasury Department's top sanctions official will visit Singapore and Malaysia next week, sources told Reuters. This comes as Washington seeks to combat financing of Iran and its proxies and evasion of sanctions against Iran. Russia.
The person, speaking on condition of anonymity, said there had been an increase in the movement of funds through Malaysia's financial system to Iran and its proxies, including Hamas.
Brian Nelson, the Treasury Department's deputy secretary for terrorism and financial intelligence, will use the visit to discuss U.S. concerns and the sanctions risks posed by such activities, Reuters first reported. Treasury General Counsel Neil McBride will also accompany him.
The visit comes as the Treasury Department increases its focus on terrorist financing through Southeast Asia, including through fundraising activities and illegal sales of Iranian oil, the person said.
In December, the Treasury Department imposed sanctions on four Malaysia-based companies for supporting Iran's drone production.
The United States has sought to ratchet up pressure on Iran after the Israeli attack, recently imposing additional sanctions targeting Iran, including sanctions on Iranian drones used by Russia in the Ukraine war.
During his stay in Singapore, Nelson will discuss implementing a G7-led price cap on Russian oil and halting the transshipment of critical military supplies for both civilian and military purposes, the official said. That's what it means.
Since Russia invaded neighboring Ukraine, the United States and its allies have imposed sanctions on thousands of targets. The war left tens of thousands of people dead and cities destroyed.
The U.S. government has since sought to crack down on circumvention of Western measures, including the shipment of military and civilian products to Russia through third countries.
Singapore is a major shipping hub. Insurance companies and other maritime services companies operating in Singapore warn about circumvention of Russian oil price caps and question whether documents pledging to buy oil below the $60 cap are accurate. They complain that it is difficult to verify.
The G7 Russian oil price cap, imposed in December 2022, frees up Russian revenue available for the Ukraine war by allowing insurance and other services provided by the West only on cargoes priced below $60 per barrel. The aim is to reduce the
(Reporting by Daphne Psaledakis; Additional reporting by Timothy Gardner; Editing by Don Durfee and Leslie Adler)
