Ali Ansari used shell companies and bank accounts across multiple jurisdictions to accumulate vast holdings under Saint Kitts and Nevis-based Smart Global Ltd., the US Treasury Department said last week when it designated the financier and the firm.
Smart Global has been the ultimate owner of two properties in Germany’s financial hub: Hilton Frankfurt City Centre and the Hilton Frankfurt Gravenbruch, corporate records show.
As part of its sanctions, Treasury’s Office of Foreign Assets Control issued a general license to authorize the wind down of transactions involving Smart Global until Aug. 9. In effect, this gives Hilton several weeks to safely wrap up its dealings with Khamenei network entities without violating sanctions, said the people, who requested anonymity because they’re not authorized to speak with the media.
The regulatory move marks a rare instance of a major American brand, long associated with business, politics and celebrity, getting caught up in Iran sanctions. For Hilton, Germany contributes a modest amount to the firm’s overall revenue compared with the US. Even so, the country has been identified as a strategic growth market in Europe.
A company spokesperson said Hilton is aware of the US sanctions move and is “looking into the matter,” noting it “will ensure full compliance with the law.” Representatives for the US Treasury Department didn’t respond to a request for comment. Through his lawyer, Ansari has previously denied any relationship with Khamenei and said he would appeal against the UK’s sanctions, which were imposed late last year.
Hilton branding deals often involve long-term agreements in which a local owner retains ownership of the hotel and funds its operations while Hilton provides the brand, loyalty program and in some cases day-to-day management without investing its own capital, according to the firm’s website and corporate filings. This asset-light model has boosted Hilton’s appeal with investors, though the contracts can be harder to exit without cause.
Months earlier, Hilton launched an internal review to assess whether maintaining its business relationships with the German hotels could expose it to sanctions risks. That followed a Bloomberg News investigation in January, which detailed the Iranian ownership structure. The Khamenei network’s payments to global companies, including Hilton, have subsequently drawn scrutiny from the US Justice Department.
Ansari, a construction magnate who oversaw the now-defunct Ayandeh Bank, served as a conduit to help Khamenei in shifting funds abroad, Bloomberg reported.
US officials said the financier’s activities caused untold damage to Iran’s economy.
“Ansari has made a name for himself by institutionalizing embezzlement within the Iranian regime,” the Treasury Department said last week. That’s come “at the expense of the Iranian people.”
By Ben Bartenstein
