U.S. virtual currency exchange agrees to pay $362,000 to settle violations of Iranian sanctions
The virtual currency exchange also agreed to invest an additional $100,000 in certain sanctions compliance controls.
Settle violations of Iranian sanctions
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a Delaware-incorporated virtual currency exchange with operations in the United States and elsewhere agreed to remit over $362,000 to settle its potential civil liability for apparent violations of sanctions against Iran.
According to today’s OFAC release [PDF 189 KB], the virtual currency exchange also agreed to invest an additional $100,000 in certain sanctions compliance controls.
Due to the virtual currency exchange’s failure to timely implement appropriate geolocation tools, including an automated internet protocol (IP) address blocking system, the virtual currency exchange exported services to users who appeared to be in Iran when they engaged in virtual currency transactions on their platform.
The settlement amount reflects OFAC’s determination that the apparent violations were non-egregious and voluntarily self-disclosed.
For more information, contact a professional with KPMG’s Trade & Customs services:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.