On 27 June, OFAC announced that Red Bull North America, Inc. (“Red Bull”) agreed to pay $89,775 to settle potential civil liability for seven alleged violations of the Cuban Assets Control Regulations. The underlying conduct involved the travel of seven Red Bull representatives to Cuba in June 2009 to film a documentary. The production of the film and the associated travel was approved by Red Bull management, but Red Bull did not receive authorisation from OFAC.
OFAC determined that Red Bull did not self-disclose the apparent violations and that they constituted a non-egregious case. According to OFAC’s announcement, the settlement amount reflects that Red Bull had prior knowledge of US sanctions on Cuba and took steps to conceal the transactions; that Red Bull is a subsidiary of a sophisticated multinational company with extensive experience in international trade; that Red Bull has since instituted a sanctions compliance programme; and that Red Bull had not received a penalty notice from OFAC in past five years.