U.S. holding company to pay $4 million to settle violations of Iranian sanction regulations

U.S. holding company to pay $4 million

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a multinational conglomerate holding company based in Omaha Nebraska, and its foreign subsidiary in Turkey agreed to pay over $4 million to settle the potential civil liability for 144 apparent violations of the Iranian Transactions and Sanctions Regulations.

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According to the OFAC release [PDF 138 KB],  between December 2012 and January 2016, the subsidiary in Turkey exported 144 shipments of cutting tools and related inserts (having a total value of just over $383,000) to two third-party Turkish distributors knowing that such goods would be shipped to a distributor in Iran for resale to Iranian end-users, including several entities later identified as meeting the definition of the government of Iran, which would have been prohibited if engaged in by a U.S. person. The OFAC noted these transactions appear to have violated provisions of the Iranian sanction regulations.

The OFAC determined that the U.S. entity voluntarily self-disclosed the apparent violations on behalf of its subsidiary in Turkey, and that the apparent violations constitute an egregious case.


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

Doug Zuvich
Partner and Global Practice Leader
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E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
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Andy Siciliano
Partner and National Practice Leader
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E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
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E: labad@kpmg.com

Irina Vaysfeld
Principal
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E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
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E: aahanchian@kpmg.com

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

Gisele Belotto
Managing Director
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E: gbelotto@kpmg.com

George Zaharatos
Principal
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E: gzaharatos@kpmg.com

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

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

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