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DIRECTOR OF GLOBAL COMPLIANCE, INSTRUMENTATION, COLUMBUS

From FY 2008 to 2018, in addition to prosecutions, OFAC investigations have resulted in settlements with businesses for a total of more than $2,780,000,000. Yes, that is $2.7 BILLION!

Here is a selection of OFAC settlement agreements.

2020

    • Eagle Shipping International is settling with OFAC owing to violations of OFAC regulations that occurred under a previous management, prior to the company having declared bankruptcy, and its subsequent revival. Between 2011 and 2014, Eagle Shipping entered into an agreement with a company in Singapore to transport sea sand. 41 of these voyages were in violation of the now repealed Burmese sanctions, or to the benefit of Myawaddy, a sanctioned entity at the time of these voyages. Eagle had petitioned OFAC for a license; however, while the status of this application was pending, they went ahead with the voyage anyway. Subsequently, after receiving a denial of the license from the OFAC, they continued to carry sand cargoes by Myawaddy in Burma to Singapore. Eagle’s new management self-disclosed these violations to OFAC themselves after an internal investigation, which OFAC cited as an extenuating factor. The settlement amount for this case came to $1,125,000. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20200127_eagle_settlement.pdf

2019

    • Stanley Black & Decker of New Britain, Connecticut is a provider of mechanical and power tools. The Office of Foreign Assets Control and Stanley Black & Decker announced that they had reached a settlement in March, relating to the latter’s acquisition of China-based GQ. GQ is similarly a provider of mechanical and power tools, and they had been engaged in business dealings and transactions with entities in Iran, a country with several sanctions imposed upon it. As part of their acquisition due diligence, Stanley Black & Decker took steps to have these transactions ceased. However, post-acquisition, minimal steps were taken to implement and enforce this cessation, and GQ continued to export goods to Iran through 2013 and 2014. Stanley Black & Decker voluntarily self-disclosed the violations of OFAC regulations, and cooperated with the investigation, which OFAC considers extenuating points in the final terms of the settlement. As part of that settlement, Stanley Black & Decker paid OFAC $1,869,144, agreed to enforce more stringent internal measures for compliance, and to terminate employment of the executives involved in the violation of OFAC regulations. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190327_decker_settlement.pdf
    • The Acteon Group Ltd., and its subsidiaries 2H Offshore Engineering Ltd. (based in the United Kingdom) and 2H’s Malaysian affiliate, allegedly violated sanctions on Cuba between 2011 and 2012, and 2H’s Malaysian subsidiary performed designed analyses for oil well drilling projects in Cuban territorial waters, and sent engineers to Cuba to conduct workshops related to these analyses. This resulted in 2H transacting with multiple Cuban entities, including Petronas Carigali Sdn Bhd (“Petronas”); Repsol S.A. f.k.a. Repsol YPF S.A. (“Repsol”); Petróleos de Venezuela, S.A. Cuba S.A. (“PdVSA Cuba”); and JSC Zarubezhneft (“Zarubezhneft”). These violations are believed to have occurred under a former Global Director. In settlement of this investigation, the Acteon Group will pay OFAC $227,500. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190411_acteon_settlement.pdf
    • OFAC conducted an investigation of Standard Chartered Bank, in connection with thousands of alleged transactions processed via the United States that were in violations of the Iranian Sanctions and Regulations, as well as sanctions placed on Sudan and Syria at the time. OFAC determined that Standard Chartered had not voluntarily self-disclosed these violations, and that they constituted an egregious offense. As part of the settlement, Standard Chartered will pay OFAC $639,023,750, and implement internal compliance, management, and risk assessment measures. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/scb_settlement.pdf
    • UniCredit S.p.A., UniCredit Bank Austria AG, and UniCredit AG settled with OFAC for $611,023,420.68 after three of its corporate entities were found to be in violation of OFAC over 2,820 transactions, either routed through the SWIFT payment system, and/or in the U.S. dollar, in contravention of OFAC sanctions on Iran. The violations, which were not voluntarily self-disclosed, were found to constitute an egregious case. In addition to the monetary fines, UniCredit also made compliance, management, risk assessment, internal control, testing and audit, training, and annual certification commitments. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190415_unicredit_bank_ag.pdf, https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190415_unicredit_bank_austria_ag.pdf, and https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190415_unicredit_spa.pdf
    • The British Arab Commercial Bank does not maintain offices, conduct business, or otherwise maintain a presence under U.S. jurisdiction. However, between 2010 and 2014, BACB processed 72 payments totaling $190,700,000 related to Sudan, on behalf of at least seven Sudanese financial institutions, through a foreign bank. While BACB itself does not fall under U.S. jurisdiction, and made sure to not process any transactions through the U.S. system, the foreign bank used to process these transactions did, bringing BACB in contravention of OFAC regulations. The settlement account was agreed to be $228,840,000; however, in view of BACB’s operating capacity, as well as the fact that it no longer transacts with Sudan, the amount was reduced to $4 million. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20190917_bacb_settlement.pdf

2018

    • Societe Generale S.A. processed more than a thousand transactions through the U.S., or through U.S. financial institutions, in violation of the Cuban Assets Control Regulations. These transactions were processed over five years, and in excess of $5 billion. These violations were determined by OFAC to be egregious. Societe Generale, however, voluntarily self-disclosed these violations to OFAC, and expended a significant amount of resources to co-operate with OFACs investigation. OFAC and Societe Generale settled to the amount of $53,966,916.05. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20181220_zoltek_settlement.pdf
    • The Yantai Yereh Oilfield Services Group allegedly violated OFAC’s sanctions on Iran at least 11 times between 2014 and 2016, when it attempted to export or re-export U.S. origin goods to Iran via China. It only stopped its violations of OFAC sanctions when the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) added Yantai Jereh Oilfield Services Group Co., Ltd. and four of its former employees to a denied party list. As part of the settlement for this investigation, the Jereh Group paid OFAC $2,774,972. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20181212_jereh_settlement.pdf
    • Zoltek U.S. is an industrial equipment and services company based in Missouri, U.S. The company is engaged in the manufacturing and sale of carbon fiber, a substance that has many applications. Between 2012 to 2015, Zoltek is believed to have violated the sanctions placed on Belarus at least 26 times. As part of the settlement agreement for this investigation, Zoltek will pay OFAC $7,772,102. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20181220_zoltek_settlement.pdf
    • The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $145,893 settlement agreement with Ericsson, Inc. (“EUS”) of Plano, Texas and Ericsson, AB (“EAB”) of Stockholm, Sweden. EUS and EAB agreed to settle their potential civil liability for an apparent violation of the Sudanese Sanctions Regulations. The apparent violation involved employees of EUS and EAB conspiring together and with employees of a third company to export and reexport a satellite hub from the United States to Sudan and to export and reexport satellite-related services from the United States to Sudan.  https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20180606_ericsson_settlement.pdf

2017

    • CSE TransTel Pte. Ltd. (“TransTel”), a wholly-owned subsidiary of the international technology group CSE Global Limited, both of which are located in Singapore, has agreed to pay $12,027,066 to settle its potential civil liability for 104 apparent violations of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/transtel_settlement.pdf
    • As part of a combined $1.192 billion resolution, pending court approval, with federal agencies, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $100,871,266 settlement agreement with Zhongxing Telecommunications Equipment Corporation and its subsidiaries and affiliates, as well as with ZTE Kangxun Telecommunications Ltd. and its subsidiaries and affiliates (collectively referred to as “ZTE”), to settle ZTE’s potential liability for apparent violations of the Iranian Transactions and Sanctions Regulations. https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20170307_zte_settlement.pdf

2016

2015

2014

2013

2012

2011

2010

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