OFAC Imposes Nearly $150,000 in Civil Penalties
The Treasury Department's Office of Foreign Assets Control (OFAC) has issued its monthly list of civil penalties imposed against companies and individuals for violating the sanctions programs administered by OFAC. The following is a summary of the settlements announced by OFAC in its February 2006 report:
The Coca-Cola Company of Atlanta, GA, paid a civil penalty of $136,500 to settle allegations of violations of the Sudan Sanctions Regulations occurring between June 2002 and April 2004. OFAC alleged that Coca-Cola exported to its bottler in Sudan services not authorized by its OFAC license and disregarded or evaded certain OFAC license restrictions. The services included financial and market support. Coca-Cola represented to OFAC that it has taken remedial measures and made upgrades to its OFAC compliance program. Coca-Cola voluntarily disclosed this matter to OFAC.
The Chinese American Bank of New York, NY, paid a $7,370 civil monetary penalty to settle alleged violations of the Iran Sanctions Regulations in July 2000. OFAC alleged that the Chinese American Bank exported services to and facilitated a foreign party’s transactions with Iran by initiating an unauthorized funds transfer on behalf of a corporate offshore customer destined for an account at Bank Melli Iran – Dubai Branch, a bank owned and controlled by the government of Iran. The Chinese American Bank did not voluntarily disclose this matter to OFAC.
OFAC imposed a penalty of $2,357.95 against Demars International, Inc. of Jamaica, NY for violations of the Kosovo Sanctions Regulations in December 2000. OFAC claimed that, at the time the prohibitions were in effect, Demars made multiple shipments of merchandise to Belgrade, Yugoslavia without OFAC authorization. Demars did not voluntarily disclose this information to OFAC.
In addition, OFAC imposed $1000 penalties on two individuals for travel-related transactions incident to travel to Cuba. OFAC stated that the travel-related transactions included, but were not limited to, the purchase of food, entertainment, lodgings, ground transportation and incidentals. One of the individuals traveled to and from Cuba through Nassau, The Bahamas, and round-trip between Nassau and Cuba aboard Cubana Airlines, a Specially Designated National of Cuba. The other individual traveled through Montreal, Canada.
OFAC also assessed a civil penalty against an individual for travel-related transactions incident to travel to Cuba and importing Cuban merchandise. The individual paid $1,000 to the U.S. Treasury for Cuban embargo violations. The violations involved the purchase from a Canadian travel company of a tour package that included round-trip airfare between Montreal, Canada, and Cuba aboard Cubana Airlines. Upon returning from Cuba, the individual transported goods of Cuban-origin into the U.S.
Labels: OFAC
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