OFAC Issues Monthly Civil Penalty Report
The Treasury Department's Office of Foreign Assets Control (OFAC) today issued its monthly report of civil penalties imposed on companies and individuals for allegedly violating the sanctions regimes administered by OFAC.
OFAC's monthly report indicates that the agency settled three cases involving corporations and two cases involving individuals. The following is a summary of the settlements:
- A.N. Deringer, Inc., a logistics company, paid $700 to settle allegations of violations of the Iranian Transactions Regulations occurring in July 2004. Specifically, OFAC alleged that A.N. Deringer, Inc. acted without an OFAC license by exporting goods to Iran. A.N. Deringer, Inc. did not voluntarily disclose this matter to OFAC.
- Spacelabs Medical, Inc. of Redmond, Washington and Datex-Ohmeda, Inc. of Madison, Wisconsin agreed to settle allegations of violations of the Iranian sanctions occurring between October 2000 and January 2003. Datex-Ohmeda paid $66,547.31 to OFAC to settle this matter. OFAC alleged that Datex-Ohmeda’s former division, Spacelabs Medical, exported medical devices from the United States through an entity in Dubai, U.A.E. to Iran or the Government of Iran without authorization. OFAC stated that both Datex-Ohmeda and Spacelabs Medical have reported to OFAC corrective measures and improvements to their OFAC compliance programs. The Spacelabs Medical division of Datex-Ohmeda voluntarily disclosed this matter to OFAC.
- Kinecta Federal Credit Union of Manhattan Beach, CA paid $3,102 to settle allegations of violations of the Cuban Assets Control Regulations occurring on November 18, 2003. OFAC alleged that Kinecta acted without an OFAC license or outside the scope of its license by initiating a funds transfer destined for a Cuban national. Kinecta did not voluntarily disclose this matter to OFAC.
- OFAC imposed $820 on one individual and $1071.90 on another individual (OFAC does not release the names of individuals) for purchasing Cuban-origin cigars offered for sale on the Internet. The individuals did not voluntarily disclose the violations to OFAC. (Editor's Note: OFAC's most recent "Cuban Cigar Update", which describes the broad restrictions on the purchase of Cuban cigars, can be found here).