#Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg

Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg

The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.

The emirate’s finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn’t public. Both firms appeared in recent days in the registry of the DIFC free zone as “inactive - suspended.” The registry doesn’t reflect the start date for the suspensions.

It’s not yet clear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees, but many others remain active, according to people with direct knowledge of the matter, who declined to be named speaking about private matters. The DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it, the people said.

The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they believe they should be allowed to continue. Meanwhile, they’re not allowed to operate. If authorities are satisfied with the additional information provided, then the suspension can be reversed.

Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., also appeared in recent days in the DIFC registry as “inactive - suspended.”

A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.

A spokesman for Ocean Leonid said in a statement on Tuesday that the company has filed its “formal notice of objection with the DIFC Registrar.”

“OL are in active discussions with the DIFC in order to provide all information required by the DIFC on all areas of interest to them relating to OL,” he said. “The company operates in full compliance with all relevant laws and regulations, and has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership being ISFAD Fund LP. Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC in order that the suspension is lifted based on actual documentary evidence established under law.”

Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva and Singapore, Bloomberg News reported on Oct. 24. A spokesman for Ocean Leonid said earlier this month the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.

A lawyer for Shamkhani said his client has no relationship with either Milavous or Ocean Leonid.

In August, Bloomberg News reported the role that Shamkhani, whose father is a senior adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, plays in the world of Iranian and Russian oil trading, with Milavous said to be operating as one of the parent firms in his network.

The stories are part of a year-long investigation that’s involved interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. The US has taken steps to crack down on the trading network, according to people familiar with the matter.

Shamkhani has denied most details in the Bloomberg reports, including owning any oil company, controlling a trading network or having a firm involved in commodities deals with Iran or Russia.