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OFAC Enforcement Action: EGL, Inc.

Another day, another fine…

EGL, Inc. provided freight forwarding services to Cuba between 2005 and 2008 in violation of the Cuban Assets Control Regulation (CACR), and 10 times to Iran in 2008 in violation of what is now called the Iranian Transactions and Sanctions Regulations (ITSR).

The company self-disclosed the Cuban violations, but not the Iranian ones. OFAC considered the violations to be non-egregious (the freight to Iran was oil drilling equipment). The base penalty of $206,889 got knocked down to a final penalty of $139,650 because:

The settlement amount reflects OFAC’s consideration of the following facts and circumstances, pursuant to the General Factors under OFAC’s Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, App. A: EGL has no history of prior sanctions violations; EGL substantially cooperated with OFAC’s investigation, including by entering into statute of limitations tolling agreements, and by producing responsive materials in a clear and organized fashion; EGL took remedial measures to prevent future OFAC violations; the alleged violations of the CACR and the ITR by EGL resulted in significant harm to OFAC’s sanctions programs; and EGL had reason to know that the Aban VIII was an oil rig operated by an Iranian company in Iranian waters.

The last line is important – it’s not just the published list you’re responsible for. If you should know about a connection to a sanctioned individual, company or country, you are responsible for it, even if it is not explicitly listed on the SDN List.

Link:

OFAC Enforcement Action

Categories: OFAC Updates Settlements

eric9to5

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