OFAC Imposes More Than $67,000 in Civil Penalties for Violations of Cuba and Iran Sanctions Regulations
After a four month hiatus, the Treasury Department's Office of Foreign Assets Control (OFAC) today announced that it had imposed civil penalties against two financial institutions, a logistics company, a college and an individual for violating the Cuba and Iran sanctions programs administered by OFAC. The following is a summary of the settlements announced by OFAC:
Downey Savings and Loan of Newport Beach, California paid $44,898.65 to settle allegations that the S&L violated the Iran Sanctions Regulations by operating 23 accounts for 20 account holders that were permanent residence in Iran. Downey voluntarily disclosed the violations to OFAC and advised OFAC that it has taken corrective measures and made improvements to its OFAC compliance program.
Minneapolis, Minnesota-based Augsburg College paid a civil penalty of $9,000 to settle allegations that it violated the Cuban embargo on four occasions between January 2000 and June 2004. OFAC alleged that Augsburg acted without an OFAC license or outside the scope of its license by arranging travel to, from, and within Cuba for other organizations. Augsburg was not licensed to act as a travel service provider, was not affiliated with and did not share a joint OFAC license with these organizations. Augsburg did not voluntarily disclose this matter to OFAC. [Editors Note: OFAC is currently investigating a number of violations of Cuba travel licenses].
After making a voluntary disclosure, Exel Global Logistics, Inc. of Hayward, California paid $6,226.50 to settle allegations that it coordinated shipments to Iran in 2001.
Bethesda, Maryland-based Chevy Chase Bank paid $3,352.86 to settle charges that the bank violated the Iran Sanctions Regulations in 2002 by processing an unauthorized funds transfer relating to Iranian origin services. Chevy Chase Bank did not voluntarily disclose this matter to OFAC.
OFAC also imposed a $3,750 civil penalty against an individual for travel-related transactions incident to travel to Cuba. Specifically, OFAC alleged that from March until April 2002, the individual engaged in travel-related transactions with Cuba, including purchasing food and lodging. The individual traveled to and from Cuba via third countries.
Labels: OFAC
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