The United States has raised concerns about the environmental risks posed by the illicit transfers of Iranian oil off the coast of Malaysia. According to a report by Malaysian news portal Malaysiakini, a senior U.S. Treasury official has warned that these illicit oil shipments, which often traverse the waters around Malaysia, are loaded onto vessels of “questionable legitimacy” that may pose major environmental and safety risks.
Brian Nelson, the U.S. Treasury Undersecretary for Terrorism and Financial Intelligence, said that one of the main ways Iran raises money is through the sale of illicit oil to buyers in East Asia, and many of these shipments pass through the waters around Malaysia. He expressed concern over any parties providing “ship-to-ship” transfers of this illicit oil, as such maneuvers could lead to accidents or oil spills that threaten Malaysia’s coasts.
The U.S. Treasury has also seen an uptick in attempts by Iran and its proxies, including the Palestinian militant group Hamas, to raise and move money in Southeast Asia. Nelson urged those who wish to support humanitarian assistance to Gaza to donate to reputable charities to ensure the funds are not diverted elsewhere.
Nelson and Neil MacBride, Treasury General Counsel, are currently on a visit to Singapore and Malaysia to advance efforts in countering the financing and revenue generation by Iran and its proxies.
In response, Malaysia’s Home Minister Saifuddin Nasution Ismail said he conveyed the country’s stance regarding sanctions to Nelson during a meeting. Saifuddin stated that Malaysia would comply with United Nations sanctions but would not recognize unilaterally applied sanctions. He also informed Nelson that Malaysia had investigated and taken action against an organization with suspected links to Palestine, though he did not provide the name of the organization.
The U.S. Treasury’s focus on the environmental risks and the financing of militant groups through illicit oil transfers in the region underscores the growing concern over the impact of these activities both on the environment and regional security.