Iran Expands Its Use of Fraudulent Ship Registries to Evade Sanctions

At a Glance

• Windward identified 278 Iranian-linked ships broadcasting the flags of 23 fraudulent ship registries between August 6 and November 5.
• Iran has expanded its use of fraudulent registries beyond tankers to other vessel types over the past 18 months, while Russia has largely discontinued the practice.
• Nicaragua is the top fraudulent registry used, with 53 ships, followed by Anguilla with 39.
• 68% of the ships were tankers, 171 of them sanctioned.
• The average age of the vessels was 26 years.
• OFAC’s November 4 alert said vessel owners and operators evading U.S. sanctions have increasingly relied on false flags.
• OFAC targeted a network, most of it based in Chandigarh, India, that it said sold fraudulent flags to Iranian ships.

Nearly 300 Iranian-Linked Ships Sail Under Fraudulent Flags

Nearly 300 Iranian-linked ships have been tracked using fraudulent ship registries over the past 90 days to evade sanctions, an accelerating issue that triggered an OFAC alert alongside sanctions imposed on key enablers and companies.

Russia has largely discontinued using fraudulent ship registries for sanctions-evading tankers over 2026 as they are ‘stateless’ and thus vulnerable to naval boarding and interdiction. However, Iran has not only increased the number of ships using fraudulent ship registries but has expanded their use beyond tankers to other vessel types over the past 18 months.

Windward Tracks 278 Ships Across 23 Fraudulent Registries

Windward identified 278 ships that have broadcast flags of 23 fraudulent ship registries while sailing in the Middle East Gulf, Indian Ocean, and Gulf of Oman from August 6 to November 5.

The top fraudulent ship registry used is Nicaragua (53 ships), followed by Anguilla (39) and Netherland Caribbean (27).

• 68% of ships using fraudulent registries were tankers (190), of which 171 were sanctioned.
• 22 of the 38 general cargo ships are flagged with the false Anguilla ship registry (58%), as are 10 of the 11 landing craft, including one naval landing craft. Mozambique has the other. Only 2 of Anguilla’s 39 vessels are tankers.
• The average age of vessels identified using the fraudulent ship registries was 26 years
• Guyana was used as the flag for five of the seven containerships identified.
• LPG tankers comprised 17% of ships.

There were 268 vessels identified using fraudulent ship registries in the same region in the year-ago period, but the number of cargo vessels has more than tripled (to 38 from 11).

The number of tankers is down (222 vs. 190 now), but the U.S. blockade on Iranian ports, in place since mid-July, has seen many tankers leave the area.

OFAC Targets a Network Selling Fraudulent Flags to Iranian Ships

Vessel owners and operators evading U.S. sanctions and trading Iranian-origin petroleum or petrochemicals have increasingly relied on false flags to continue operating, OFAC said in its November 4 alert. The alert noted the use of false flags had increased since April 2025 when it warned of flag hopping within Iran’s shadow fleet.

OFAC targeted 13 individuals and companies, most based in Chandigarh, India, that it said formed a criminal network selling fraudulent flags to Iranian ships.

India-based Suniel Kumar Sharma and his wife, Jaspreet Preeti Shahid, formed companies that posed as the flag registries and maritime service providers of countries and jurisdictions including Guyana, Eswatini, Aruba, Mali, Mozambique, Malawi, Sint Maarten, and Timor-Leste, OFAC said. These companies sold fraudulent registrations and certificates to vessels carrying illicit Iranian oil.

Written by Michelle Wiese Bockmann, Windward Senior Maritime Intelligence Analyst.