Menu Home

Even Obamacare doesn’t cover SDNs: Bupa Florida pays $128,704

OFAC and Bupa Florida agreed to a fine of $128,704 to settle liabilities for 39 apparent violations of the anti-narcotics sanctions programs and Cuba Asset Control Regulations (CACR) between March 2008 and March 2011. They offered “insurance support services for healthcare policies” for people sanctioned under the two anti-narcotics sanctions regulations, as well as reimbursing claims for medical treatment in Cuba.

The base penalties for these self-reported, non-egregious violations was only $95,337 (total transaction value was a touch over $190,000) – so why was the final amount so high? Let OFAC tell you:

OFAC found the following to be aggravating factors in this case:

  • BupaFlorida acted with reckless disregard for U.S. sanctions requirements and failed to exercise aminimum degree of caution or care to avoid the conduct that led to the apparent violations;
  • BupaFlorida had actual knowledge or reason to know that the policyholders it insured (andbeneficiaries of claims it serviced) were SDNTs or SDNTKs;
  • Bupa Florida’s conduct resulted inharm to U.S. sanctions program objectives; and
  • Bupa Florida does not appear to have had anOFAC compliance program at the time the apparent violations occurred.

OFAC considered thefollowing to be mitigating factors:

  • Bupa Florida has not received a penalty notice or Finding ofViolation in the five years preceding the earliest date of the transactions giving rise to theapparent violations;
  • Bupa Florida has taken steps to implement more effective controls andprocedures as its remedial response to the apparent violations; and
  • Bupa Florida substantiallycooperated with OFAC’s investigation by submitting the relevant documents and information ina clear and organized fashion, and by executing and then extending a statute of limitations tollingagreement.


OFAC Enforcement Information



Categories: Cuba Sanctions Narcotics Trafficking OFAC Updates Settlements


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: