Insurers and maritime stakeholders are being urged to step up compliance checks in response to updated US sanctions targeting Iran’s petroleum and construction sectors.

The International Group of Protection & Indemnity Clubs issued new guidance in April based on the Office of Foreign Assets Control warning that shipments involving Iranian oil present “significant sanctions risks” to the maritime industry, including insurers. Ofac stressed that providing coverage to vessels involved in sanctioned trade could expose companies to enforcement action.

The advisory highlights deceptive tactics used to disguise the origin of Iranian oil, including the use of “shadow fleets”, falsified documents and manipulation of tracking systems. These methods, Ofac said, were designed to conceal illegal shipments and bypass international scrutiny.

Ofac recommends that insurers and other stakeholders review all shipping documents carefully, verify vessel ownership and cargo origin and monitor for signs of vessel identity tampering. “Vessels carrying Iranian-origin petroleum” have intentionally disabled automatic identification system transponders or manipulated data, the advisory stated.

Insurers are also urged to request contractual assurances that their clients are not engaged in sanctionable activity. “Due diligence is recommended,” Ofac warned.

On May 21, the US State Department further expanded sanctions to cover certain metals and the Iranian construction sector, which it said was controlled by the Islamic Revolutionary Guard Corps. These updates broaden the list of high-risk goods and sectors insurers must monitor.

Cover will not apply to any trade breaching sanctions and all International Group clubs have issued similar advisories urging compliance.