On July 27, the Treasury’s Office of Foreign Assets Control (OFAC) announced it had reached a settlement with a subsidiary of a Singapore-based international technology group for alleged violations of OFAC sanctions against Iran. OFAC claimed that between August 25, 2010 and November 5, 2011, the subsidiary entered into contracts with multiple Iranian companies, engaged several third-party vendors to provide goods and services for the contracts, and caused “at least six separate financial institutions to engage in the unauthorized exportation or re-exportation of financial services from the [U.S.] to Iran.” Furthermore, the subsidiary made a statement to a non-U.S. financial institution in Singapore (the Bank) stating, “In consideration of [the Bank] agreeing to continue providing banking services in Singapore to our company, we . . . hereby undertake not to route any transactions related to Iran through [the Bank], whether in Singapore or elsewhere.” However, the subsidiary began originating USD funds transfers through the Bank related to Iranian business transactions. Moreover, its actions provided “significant economic benefit” to Iran and individuals on OFAC’s List of Specially Designated Nationals and Blocked Persons. Specifically, OFAC maintained the subsidiary violated the following sanctions programs: (i) the International Emergency Economic Powers Act and (ii) the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560.
The settlement requires the company to pay more than $12 million to settle the claims, which the company did not voluntarily self-disclose to OFAC.