OFAC Posts Recent Penalty Information

 The Office of Foreign Assets Control (OFAC) posted on its website recent penalty information

  • Wilson Tool International, Inc. (Wilson Tool) of White Bear Lake, MN, has agreed to remit $15,000 to settle an alleged violation of the Iranian Transactions Regulations (ITR) occurring on September 12, 2005. OFAC alleged that Wilson Tool sold and exported punch press tooling equipment to an entity in Iran without an OFAC license. The transaction value was $10,304.33. OFAC determined that Wilson Tool did not voluntarily self- disclose this matter to OFAC and that the alleged violation constituted a non-egregious case. The base penalty amount for the alleged violation was $25,000, but was reduced considering mitigating factors.
  • ASF, Inc. (ASF), a Mobile, AL company, has agreed to remit $5,400 to settle allegations of a violation of the Iranian Transactions Regulations (ITR) that occurred on May 2, 2006. OFAC alleged that ASF engaged in a transaction related to goods destined for Iran and facilitated the exportation of goods from a third country to Iran by a foreign person, without an OFAC license. OFAC determined that ASF did not voluntarily disclose this matter to OFAC and that the apparent violation constituted a non-egregious case. The base penalty amount for the alleged violation was $10,000.
  • Commerzbank AG, New York Branch (Commerzbank), of New York, NY, has agreed to remit $175,500 to settle apparent violations of the Cuban Assets Control Regulations that occurred from September 7, 2005, through September 30, 2005. The agreement covers allegations that Commerzbank, acting as an advising and confirming bank in connection with a letter of credit, presented four sets of trade documents, in which a Cuban Specially Designated National (SDN) had an interest, to the Miami branch of the foreign bank that issued the letter of credit, for payment in favor of a Canadian company. The aggregate value of the trade documents was $884,157. Commerzbank did not voluntarily self-disclose the matter, and the alleged violations constituted a non-egregious case. The base penalty amount for the alleged violations totaled $260,000. The settlement amount reflects OFAC's consideration of the following facts and circumstances, pursuant to the General Factors under OFAC's Economic Sanctions Enforcement Guidelines: Commerzbank should have been aware of the prohibited Cuban interest, given that the trade documents contained repeated references to the SDN and its vessels; Commerzbank has undertaken remedial measures to strengthen its OFAC compliance program to ensure that such apparent violations do not recur in the future; and Commerzbank cooperated with OFAC's investigation, including by agreeing to toll the statute of limitations.