U.S. company to pay $216,000 to settle violations of Iranian sanctions

U.S. company to pay $216,000 to settle violations

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that an Ohio-based company has agreed to pay approximately $216,000 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 189 KB], between July 2013 and March 2017, the company—a Cleveland, Ohio-based entity that manufactures process controls, airflow pressure switches, boiler controls, and other instrumentation—exported to two European companies 21 shipments of air pressure switches, valued at about $687,000 and these items were subsequently reexported to Iran.

The OFAC release further explains that these apparent violations occurred in large part because the company failed to take appropriate steps in response to “multiple warning signs” it encountered when engaging in business with its European trade partners and these signs gave the U.S. company “reason to know” its goods were being reexported to Iran. The warning signs included:

  • Customer interest in Iranian market
  • Inclusion of Iran in authorized sales territory
  • Obfuscated end-user request
  • Engagement with Iranian nationals at European trade shows
  • Request to remove the “Made in USA” label

OFAC determined that the company voluntarily disclosed the apparent violations, and that the apparent violations constituted a non-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
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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