Sanctioned Cargo Inspection Company in Singapore Forced to Lay Off Staff and Wind Down Operations

After the U.S. Treasury sanctioned a Singapore-based cargo inspection company last month, the firm has laid off most of its staff and is winding down operations, according to local media.

On May 13, the U.S. Treasury’s Office of Foreign Asset Control (OFAC) blacklisted Chinese-owned inspection company CCIC Singapore for allegedly facilitating Iranian oil shipping. The Treasury accused CCIC Singapore of providing cargo inspection services for a ship-to-ship transfer of about two million barrels of Iranian crude from the sanctioned VLCC Siri. The firm also allegedly provided similar services for the sanctioned tanker Hecate, potentially issuing fake certifications for Iranian oil cargoes as “Malaysian.”

The Treasury highlighted that Iranian front company Sepehr Energy heavily relied on CCIC Singapore for inspections of Iranian crude cargoes. As a result of these sanctions, the company faced severe repercussions that led to significant operational challenges.

U.S. sanctions have a profound impact on businesses, often resulting in freezing of bank accounts and immediate disruption of operations. Following the OFAC designation, CCIC Singapore was compelled to lay off approximately 300 employees, effective June 1. The employees reported that salary payments for May were delayed due to frozen accounts, and dismissal notices indicated that payouts would only occur post liquidation, expected by mid-2026.

Responding to these developments, CCIC Singapore confirmed the cessation of operations in Singapore. In a statement to CNA, the company acknowledged the unforeseen impact of sanctions, stating, “This decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances.”