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U.S. company agrees to pay $500,000, Iranian sanction regulations violation

U.S. company agrees to pay, Iranian sanction violation

The U.S. Treasury Department, Office of Foreign Assets Control (OFAC) today announced that a U.S. company agreed to settle reported violations of the Iranian sanctions regulations.

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According to the OFAC release [PDF 22 KB], the Connecticut company is to pay over $500,000 to settle five apparent violations of the Iranian sanctions regulations. The company’s business involved global sourcing and marketing of raw cement materials. The OFAC reported that between July 2014 and January 2015, the company purchased approximately 264,000 metric tons of Iranian-origin cement clinker from a company located in the United Arab Emirates, but with knowledge that the cement clinker was sourced from Iran. The U.S. company then resold and transported the clinker to a company in Tanzania.

OFAC determined that the company voluntarily self-disclosed the apparent violations to OFAC, and that the apparent violations constitute a non-egregious case.

The OFAC concluded that this case demonstrates the importance for companies operating in high-risk industries (e.g., international trading) to implement risk-based compliance measures, especially when engaging in transactions involving exposure to jurisdictions or persons implicated by U.S. sanctions. Companies engaging in international transactions need to consider and respond to sanctions-related warning signs—such as information that goods are originating from, being loaded or unloaded at ports located in, or being trans-shipped through countries or regions subject to comprehensive U.S. economic and trade sanctions.

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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