CCIC Singapore forced into liquidation and staff cuts after US sanctions freeze bank accounts

Online Citizen​

3 days ago

SINGAPORE: CCIC Singapore has announced its decision to cease operations and begin business liquidation, citing the unexpectedly severe impact of US sanctions imposed in May 2025.
The move has resulted in the retrenchment of over 300 employees, with most staff based in Singapore.
The firm, a wholly owned subsidiary of China Certification and Inspection Group (CCIC), issued a statement in Chinese acknowledging that it had been forced to shutter operations after its bank accounts were frozen.
'This led to a breakdown in cash flow, loss of clients and severe disruption to overall operations,' the company told state media CNA.
'The primary reason is that the impact of the sanctions has far exceeded expectations—banks have ceased providing services, and salaries and operational costs can no longer be paid,' it added.
Company among 15 blacklisted by US over Iranian oil
On 13 May 2025, the United States government blacklisted CCIC Singapore along with 14 other entities for allegedly helping obscure the origins of Iranian oil exports to China.
The UUS sanctions stated that Sepehr Energy, a front company linked to the Iranian military, had 'consistently relied' on CCIC Singapore to inspect oil cargoes being delivered to China.
According to the department, the company facilitated these transfers by providing inspection services and allegedly supplying falsified documents to disguise the origin of sanctioned Iranian oil.
Employees notified of retrenchment with little notice
Affected employees told CNA on condition of anonymity that they received their retrenchment notices on 30 May, with the termination effective the next day.
Some workers reported that over 400 staff were employed across Singapore and Malaysia, with more than 300 based in Singapore alone.
Retrenchment notices reportedly stated that benefits would be paid only after the liquidation process concluded, with an estimated completion date of 30 June 2026.
Delayed salary payments and severance assurances
CCIC Singapore confirmed it would pay salaries for May and partial severance payments within three days of its announcement.
However, full retrenchment benefits would only be disbursed after the conclusion of the liquidation.
Employees had earlier flagged delays in salary payments, attributing them to the company's frozen accounts and pending liquidation.
The company described the decision to terminate Singapore operations as 'extremely difficult' but 'rational' under the circumstances.
'The decision was extremely challenging for the management team, but it is a rational choice that had to be made under the current circumstances,' CCIC Singapore said.
US sanctions target broader network aiding Iran's oil trade
Established in 1989, CCIC Singapore operated out of Singapore Science Park and counted global energy giants such as Shell, BP, Total, and Exxon Mobil among its clients, as well as leading Chinese petrochemical corporations.
Its parent company, CCIC, is a Chinese state-owned enterprise founded in 1980 and supervised by the State-Owned Assets Supervision and Administration Commission of China's State Council.
The US sanctions freeze all assets in the US financial system linked to the blacklisted companies and prohibit US firms from doing business with them.
Entities at least 50 percent owned by sanctioned parties are also subject to these restrictions.
The Treasury Department has accused CCIC Singapore of facilitating illicit trade that supports Iran's ballistic missile and drone programmes, as well as regional militant groups.
In 2024, the firm allegedly oversaw the transfer of around 2 million barrels of Iranian oil and mislabelled shipments to disguise their true origin.
When asked whether it would challenge the sanctions or respond to the US allegations, CCIC Singapore stated that it had always required its subsidiaries to comply with local and international laws.
It said it would continue to manage related matters 'in accordance with the law' and maintain communication with 'all relevant parties'.