Collaborate with the OFAC: Companies which have benefited?

Some recent examples suggest that OFAC rewards those who cooperate, with moderate penalties. This is part two of three, in examining the benefits of cooperating with the Office of foreign assets Control (OFAC).

As it demonstrated in the front, the OFAC regulations strong incentive cooperation to reduce a penalty against offenders. The next section examines some recent legal actions in which, companies have taken advantage of these regulatory formulas to minimize resulting penalties for infringements.

Recent penalties charged to entities cooperating

Several recent examples suggest that OFAC rewards with mild punishments to companies that cooperate.

ATP Tour, Inc.

In June 2013, OFAC reached an agreement of $48,600 ATP Tour, Inc., for alleged violations of the program of sanctions against Iran. ATP, the governing body of professional men dedicated to tennis, He paid the salary of an official of the tournament who resided in Iran.

The ATP voluntarily disclosed these payments, and there were aggravating factors in this case, as: eight of the eighteen issued payments, they occurred after the warning letter issued by OFAC to ATP, the administration of the ATP knew of these payments, and the ATP had a compliance program when you made the payments.

Despite these considerations, the ATP is arranged by one-third of the $135,000 the amount of the fine base. In announcing the arrangement, OFAC said a number of mitigating factors that contributed to lenient arrangement, including: The ATP was offender for first time, the ATP eventually cooperated with OFAC screening, the payments meant "a relatively low damage" the goals of the programme of sanctions, the payments were possibly eligible for a license from OFAC, the ATP is not a non-profit organization, and since then it has instituted a compliance program.

Steam ship owners mutual protection and indemnity association

In May 2013, OFAC has reached an agreement by $348,000 with this Association, (the 'American Club').

The American Club was under the radar after OFAC proceeding with insurance claims involving Cuba, Sudan and Iran. The company is voluntarily revealed, and faced a penalty basis of $1,729,000, for this case no-escandaloso.

Explaining the arrangement (for only a 20% the amount of the fine base) OFAC said the American Club was a first offender, It cooperated with OFAC after being aware of the OFAC screening, and that the transactions would have probably been eligible for part of the OFAC license, If the American Club applied.

OFAC also noted that other "individual characteristics" including the size of the entity and its financial condition, they contributed with lenient arrangement.

Offshore marine Labs

In February 2013, OFAC ordered legal action against marine laboratories of high seas (OML, for its acronym in English), which exported parts and supplies to the United Arab Emirates, to be used on a floor of marine drilling, in Iranian waters.

The basis of this criminal offense, that it was not voluntarily disclosed, and that OFAC catalogued from no-escandalosa, was of $167,000. At the end the OML is arranged with $97,695 -a reduction of over of the 40%.

OFAC denotes that the aggravating factors were part of the OML: harm the objectives of the programme of sanctions to help the Iranian oil, and the OML had a compliance program to the time in which such violations took place.

On the other hand, the OML was a first-time offender, cooperated with OFAC, and implemented a compliance program, Once the violation came to light. All this convinced the OFAC allow that the company arranged with a substantial discount.

Credit Corporation Toyota Motors

OFAC has been tolerant even sophisticated companies in which their enforcement actions resulted in easily predictable violations.

For example, a drug kingpin list by OFAC, self-financing received from the Toyota Motors. Despite the fact that Toyota failed to investigate this relationship, failed to report this violation, improper compliance program, and its sophisticated business entity status, the basis of the fine was only of $26,000, and Toyota reached a settlement in April of the 2013, by $23,400.

Do you want to benefit from the OFAC?

Collaborate with the OFAC: Companies which have benefited?
Collaborate with the OFAC: Companies which have benefited?
OFAC regulations strongly encourage cooperation to reduce a penalty against offenders. Here a small list of companies and individuals who have decided to cooperate with OFAC.
Colombia Legal Corporation
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