The United States has raised concerns about the environmental risks posed by illicit transfers of Iranian oil off Malaysia, according to a report by news portal Malaysiakini. A senior U.S. treasury official highlighted the reliance of Iran on service providers based in Malaysia to move its oil, emphasizing the potential dangers associated with these transactions.
Brian Nelson, the U.S. Treasury undersecretary for Terrorism and Financial Intelligence, pointed out that Iran generates revenue through the sale of illicit oil to buyers in East Asia, with many of these shipments passing through Malaysian waters. Nelson expressed worries about the safety and environmental hazards posed by vessels involved in these transactions, which could lead to accidents or oil spills threatening Malaysia’s coastlines.
Furthermore, the U.S. Treasury has observed increased attempts by Iran and its proxies, including Hamas, to raise and transfer funds in Southeast Asia. Nelson urged individuals looking to support humanitarian efforts in Gaza to donate to reputable charities to ensure that the funds reach their intended recipients.
As part of efforts to counter financing for militant groups, Nelson and Neil MacBride, Treasury General Counsel, are currently visiting Singapore and Malaysia. While Malaysia’s prime minister’s office did not immediately respond to requests for comments, Home Minister Saifuddin Nasution Ismail affirmed Malaysia’s compliance with United Nations sanctions while expressing reservations about unilaterally imposed sanctions.
Saifuddin also disclosed that Malaysia had taken action against an organization with suspected links to Palestine, without disclosing the organization’s name. The ongoing discussions between U.S. officials and Malaysian authorities underscore the complexities of addressing illicit financial activities in the region.