International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Treasury Department's Office of Foreign Assets Control (OFAC) has issued its monthly list of civil penalties enforcement settlements. During November 2004, OFAC settled cases involving five corporations and 33 individuals.

OFAC settled the following enforcement cases involving the following companies:

--T2Checkout.com Inc., a Columbus, Ohio-based provider of online payment services, was fined $796 for engaging in the prohibited exportation of services to Libya in 2002-2003.

--Intertek Testing Services of Houston, Texas was fined $1788 for exporting services to Cuba during 1995-2000. Intertek voluntarily disclosed the violations to OFAC.

--New Sensor Corporation, a New York-based manufacturer and distributor of vacuum tubes, was fined $2500 for making prohibited funds transfers to Kosovo in 1998-1999.

--Santander Bank & Trust Bahamas Ltd.(formerly Santander Central Hispano Bank & Trust (Bahama) Ltd.) was fined $20,000 for making a funds transfer to Cuba in 2001.

In addition, OFAC imposed a total of $28,500 in penalties against unnamed individuals to settle 28 cases involving prohibited travel-related transactions with Cuba. OFAC also settled five cases, for a total of $6,237.50, against persons for importing Cuban-origin goods into the U.S. and engaging in prohibited travel-related transactions with Cuba.

Separately, on Monday, December 7, 2004, an OFAC civil penalty administrative hearing was held to hear an appeal involving a $9,750 civil penalty imposed on a Michigan couple for traveling to Cuba without a license in 2001. The case was heard by Federal Maritime Commission Administrative Law Judge Law Judge Irwin Schroeder, one of the administrative law judges that have been designated to adjudicate Cuba travel hearing. Of the 257 hearing requests involving alleged violations of the Cuban Assets Control Regulations, OFAC has indicated that 134 of the cases have been settled for a total of $150,000 in penalties. An additional 48 cases are awaiting a hearing before an administrative law judge and the remaining cases are in various stages of consideration.