U.S. announcement: Hong Kong company to pay $5.2 million to settle violations of Iranian sanctions

The settlement amount reflects the Hong Kong company’s remedial response and cooperation with OFAC.

Hong Kong company agrees to pay $5.2 million

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a company based in Hong Kong, China agreed to remit approximately $5.2 million to settle its potential civil liability for apparent violations of the Iranian transactions and sanctions regulations.

According to today’s OFAC release [PDF 207 KB], the apparent violations occurred when the company—engaged in offshore trading and cross-border trade financing—made U.S. dollar payments through U.S. financial institutions for Iranian-origin high density polyethylene resin (HDPE) from its bank in Hong Kong to the HDPE supplier's banks in Thailand. This caused the U.S. financial institutions that processed the funds to engage in and facilitate prohibited financial transactions related to goods of Iranian origin.

OFAC determined that the violations were non-egregious and voluntarily self-disclosed. The settlement amount also reflects the Hong Kong company’s remedial response and cooperation with OFAC.
 

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