Italian company to pay $950,000 to settle violations of Iranian sanctions

Company to settle violations of Iranian sanctions

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a company located in Italy agreed to pay $950,000 to settle its potential civil liability for apparent violations of the Iranian transactions and sanctions regulations.

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According to today’s OFAC release [PDF 110 KB], over an approximately four-year period, the Italian company—that produces and sells components for gas boiler systems and applications—re-exported 27 shipments of air pressure switches procured from a U.S. company intended for as many as 10 customers in Iran and caused the U.S. company to indirectly export its goods to Iran. In doing so, the Italian company obfuscated the re-exportation and Iranian customers from the U.S. company. The value of the transactions was approximately $2.5 million.

When the U.S. company became aware of the transactions with the entities in Iran, it requested that the Italian company return the components (which it did).

OFAC determined that the apparent violations were egregious and not voluntarily self-disclosed. However, in light of the Italian company’s financial condition, OFAC indicated that $650,000 of the $950,000 would be suspended on satisfactory completion of compliance commitments by the Italian company.


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

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@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
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

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

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

George Zaharatos
Principal
T: 404-222-3292
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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