The firm committed 7 apparent violations of the Iranian Transaction Sanctions Regulations (ITSR) when it shipped orthodontic devices that ended up in Iran. The value of the devices was $59.886, and the base penalty for the non voluntarily self-disclosed, non-egregious violations was $80,000 (statutory maximum was $1,750,000).
Here’s why the find got knocked down almost 50%:
OFAC considered the following to be aggravating factors:
- WCT willfully violated U.S. sanctions laws;
- WCT’s management had actual knowledge or reason to know that WCT’s products were being exported to Iran; and
- WCT had no OFAC compliance program in place until June 2008.
OFAC considered the following to be mitigating factors:
- the alleged violations did not result in great economic or other benefit conferred on Iran, as the transactions likely would have been licensed by OFAC had WCT applied for a license;
- WCT has no sanctions history with OFAC for the five years preceding the date of the first transaction giving rise to the alleged violations;
- WCT cooperated with OFAC by agreeing to toll the statute of limitations;
- WCT developed an economic sanctions compliance procedure in June 2008 and subsequently drafted a written compliance policy; and
- WCT lacked commercial sophistication in conducting international sales at the time of the alleged violations.