Office of Foreign Assets Control (OFAC), the U.S. Department of Justice (DOJ), and the Bureau of Industry and Security
- On November 14, National Oilwell Varco, Inc. (NOV) settled potential civil liability for apparent violations of the Cuban Assets Control Regulations (CACR), the Iranian Transactions and Sanctions Regulations (ITSR) , and the Sudanese Sanctions Regulations (SSR) for $5,976,028. The company knowingly facilitated transactions, directly or indirectly, to the sanctioned countries.
- Four of the apparent violations (the transactions violating the ITSR) were deemed egregious due to the fact that senior management approved the payments.
- NOV’s settlement with OFAC is concurrent with both a settlement agreement between NOV and the Department of Commerce’s Bureau of Industry and Security, and a non-prosecution agreement (NPA) executed by NOV with the U.S. Attorney’s Office for the Southern District of Texas.
- OFAC’s fine will be deemed satisfied by NOV’s payment of $25 million as set forth in the NPA; however, BIS assessed a civil penalty of $2.5 million.
Securities and Exchange Commission (SEC), DOJ, and the Federal Reserve Board of Governors
- On November 17, the SEC announced it had filed a cease and desist order against JPMorgan Chase & Co. (JPMC), whereby the bank agreed to pay more than $130 million to settle SEC charges that it won business from clients and corruptly influenced government officials in the Asia-Pacific region by giving jobs and internships to their relatives and friends in violation of the Foreign Corrupt Practices Act (FCPA).
- In a related action, JPMorgan Securities (Asia Pacific) Limited (JPMorgan APAC), a Hong Kong-based subsidiary of JPMorgan Chase & Co. entered into a non-prosecution agreement (NPA) with DOJ and agreed to pay a $72 million penalty for its role in a scheme to corruptly gain advantages in winning banking deals by awarding prestigious jobs to relatives and friends of Chinese government officials.
- In a second related proceeding, the Federal Reserve System’s Board of Governors issued a consent cease-and-desist order and assessed a $61.9 million civil penalty for unsafe and unsound practices related to the firm's practice of hiring individuals referred by foreign officials and other clients in order to obtain improper business advantages for the firm.
- The combined U.S. criminal and regulatory penalties paid by JPMC and its Hong Kong subsidiary are approximately $264.4 million.