KUALA LUMPUR, Malaysia - Malaysia's maritime enforcement agency states it possesses restricted capacity to prevent tankers connected to Iran from conducting ship-to-ship oil transfers in waters adjacent to its coastline, enabling Tehran to bypass international sanctions and attracting increasing scrutiny.

A U.S.-based advocacy organization, United Against Nuclear Iran, reports 42 instances of such ship-to-ship Iranian oil transfers occurring approximately 70 kilometers (45 miles) from Malaysia's southern Johor state since February 28, following U.S. and Israeli strikes on Iran that ignited Middle East conflict. UANI relied on satellite imagery for its observations.

Shipping industry groups and UANI have condemned these operations, with the latter faulting Malaysia for insufficient regulatory measures.

Malaysian Maritime Enforcement Agency Director-General Mohamad Rosli Abdullah explains that these transfers frequently occur in international waters beyond Malaysia's control. He describes the vessels as part of a 'shadow fleet' that dodges detection by disabling transponders, adopting fake identities, operating under darkness, and leveraging intricate ownership arrangements.

'The concerns expressed do not match the on-the-ground conditions and overlook the practical challenges of maritime policing by the MMEA,' Mohamad Rosli stated to The Associated Press.

American officials have noted that Iran's oil shipments depend significantly on service providers and transfers near Malaysian seas.

This region, termed the Eastern Outer Port Limits (EOPL) in the South China Sea, sits along a major global shipping corridor, positioned roughly midway between Iran and China, the destination for nearly 90 percent of Iran's oil.

These covert high-seas handovers from Iran-affiliated tankers have continued for years, permitting Iran to market its crude while affording purchasers credible claims of ignorance regarding its origin.

Although not prohibited by law, Malaysia advises against unauthorized transfers beyond approved zones, as they heighten spill risks, involve older ships, and occur distant from facilities where incidents could be swiftly managed.

No immediate responses came from the Iranian Embassy in Kuala Lumpur or the U.S. State Department.

Even after a U.S. naval blockade of Iranian ports began in mid-April, UANI has monitored ongoing activities by Iran-linked tankers, though success rates remain uncertain.

As of Tuesday, UANI tracked about two dozen such tankers lingering or anchored near the EOPL off Johor, unclear how many predated the blockade.

'Operations proceed as normal,' remarked Charlie Brown, a senior UANI adviser, to the AP.

'Malaysia's reluctance enables Iran's model with China and shadow fleet operators,' he added, cautioning that Malaysia risks evolving from a mere waypoint to an active enabler of illicit trade.

UANI argues Malaysia could mandate prior notice for transfers under environmental rules, bar local firms from aiding involved ships, and insist on proper insurance for spills and mishaps.

However, Mohamad Rosli countered that options are slim, given activities unfold outside territorial waters, often near borders or key shipping lanes.

He emphasized adherence to domestic laws and global treaties, denying any favoritism toward specific nations.

The transfer zone falls within Malaysia's extended economic area but adjoins Indonesia's Riau Archipelago.

Indonesia's Foreign Ministry indicated it is assessing the matter's legality.

'Indonesia prohibits use of its lands or seas for illegal purposes,' spokesperson Yvonne Mewengkang affirmed.

'Yet Indonesia respects UNCLOS navigation freedoms, such as innocent passage and transit rights through its zones.'

Mohamad Rosli highlighted a recent seizure of two ships - one stateless, one Cameroon-flagged - carrying 2 million barrels of crude in Malaysian waters via unauthorized transfer.

Released on bond, one was later sighted this month in a suspected Iranian oil handover off Johor, per Brown.

Malaysian officials 'will intensify surveillance and bolster partnerships to protect maritime security and sovereignty,' Mohamad Rosli pledged.