OFAC Issues June 2005 Penalty Report

The Treasury Department's Office of Foreign Assets Control (OFAC) today issued its monthly penalty report of civil penalties imposed on companies and individuals for violating the sanctions regimes administered by OFAC.

OFAC's monthly report indicates that it imposed penalties on four corporations, all of which involved activity prior to 2001. The report indicates that none of the enforcement actions resulted from a voluntary disclosure. The following is a summary of the enforcement actions (amount of the civil penalty is in parentheses):

--Fidelity Brokerage Services, Inc. d/b/a Fidelity Investments, 1999-2000 operation of Iranian accounts ($63,853 settlement).
--Pioneer Valley Travel, 2001 provision of unlicensed Cuba travel-related services ($750 settlement).
--WTS Agencies, Inc. (formerly Inchcape Shipping Services), 1997 facilitation of trade with Sudan ($3,000 assessment).
--Zooma Enterprises, Inc. 1998 attempted exportation of goods to Iraq ($2,500 settlement).

OFAC's monthly report also indicates that the agency settled 33 cases with individuals for engaging in travel-related transactions with Cuba for a total of $31,963 (average settlement of $968.58)(OFAC does not publish names or amounts of individual settlements). In addition, OFAC settled 15 case with individuals for traveling to and importing goods from Cuba for $24,942.38) (average settlement amount of $1662.83).