Company Settles Alleged Cuban Sanctions Violations with a $6 Million Penalty

On April 14, 2014, U.S. Office of Foreign Assets Control (OFAC) announced that CWT B.V. (CWT), a Netherlands company, has agreed to pay $5,990,490 to settle allegations of violating the Cuban Assets Control Regulations (CACR). Specifically, OFAC alleges that from August 8, 2006 to November 28, 2012, CWT violated the CACR when it provided unauthorized travel services to and from Cuba to apx. 44,430 persons. 

In 2006, CWT, a travel services provider incorporated in the Netherlands, became majority-owned by U.S. persons and thus subject to U.S. jurisdiction pursuant to the Trading With the Enemy Act (TWEA) and the CACR. OFAC determined that CWT voluntarily self-disclosed the apparent violations to OFAC, that the vast majority of the apparent violations occurred “prior to agency notice,” and that a small portion of the apparent violations occurred “subsequent to agency notice,” as they occurred after CWT filed its self-disclosure with OFAC.  Pursuant to OFAC’s Cuba Penalty Schedule, the base penalty for the alleged violations was $11,093,500. 

Among other factors, the settlement amount reflected the fact that CWT failed to exercise a minimal degree of care in that it did not recognize for years that it was subject to U.S. jurisdiction with respect to OFAC's Cuban sanctions .