Settlement Agreements between the U.S. Department of the Treasury’s Office of Foreign Assets Control and Alfa Laval Middle East Ltd. and Alfa Laval Inc.
Release date 07/19/2021
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a $415,695 settlement with Alfa Laval Middle East Ltd. (“AL Middle East”), a company located in Dubai, United Arab Emirates that sells fluid handling and other equipment for the energy industry and other sectors. AL Middle East has agreed to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). Specifically, the apparent violations were committed between May 2015 and March 2016 when AL Middle East conspired with Dubai- and Iran-based companies to export Gamajet brand storage tank cleaning units from the United States to Iran. As a result of this conspiracy, AL Middle East caused its U.S.-based affiliate to indirectly export goods from the United States to Iran by falsely listing a Dubai-based company as the end-user on its export documentation. The scope of the conspiracy included additional incomplete and contemplated export transactions with Iran that would have employed the same scheme. OFAC determined that AL Middle East did not voluntarily self-disclose the apparent violations, and that the apparent violations constitute an egregious case.
Separately, OFAC today announced a $16,875 settlement with Alfa Laval Inc. (“AL U.S.”), a company located in Richmond, Virginia. AL U.S. has agreed to settle its potential civil liability for apparent violations of the ITSR on behalf of its former subsidiary (now an operating unit) Alfa Laval Tank, Inc. (“AL Tank”), located in Exton, Pennsylvania. Specifically, the apparent violations were committed between May 2015 and March 2016 when AL Tank, which manufactures and sells storage tank cleaning equipment, referred a known Iranian business opportunity to its foreign affiliate in Dubai. The foreign affiliate then orchestrated a scheme to export goods from the United States to Iran and did so by using AL Tank to export its Gamajet brand cleaning units to Iran. OFAC determined that AL U.S. did not voluntarily self-disclose the apparent violations, and that the apparent violations constitute a non-egregious case.
So, there’s a settlement agreement in the Middle East case, and none in the U.S. case. Why? Well, neither was voluntarily self-disclosed – but the Middle East case was egregious. Seems like an extra level of naming and shaming, since settlements generally contain a greater level of detail of the conduct involved.
And, yup…. Mr. Watchlist will be looking at these later and posting more details… but this is a good way to start.