John Bean Technologies Corporation (JBT), of Chicago, Illinois, agreed earlier this month to a $391,950 settlement with the Treasury Department’s Office of Foreign Assets Control (OFAC) for alleged violations of Executive Order 13382 and the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR), which aim to financially isolate proliferators of weapons of mass destruction (WMD) by freezing their assets. According to OFAC, in April 2009, JBT sold goods to a Chinese customer that were shipped to the customer by the Islamic Republic of Iran Shipping Lines (IRISL),an entity on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) aboard a blocked vessel. When JBT presented documents connected to the shipment to a bank in the United States for payment pursuant to a letter of credit, the bank refused to advise the letter of credit. In May 2009, in an effort to receive payment, JBT allegedly presented shipment-related documents to a Spanish bank, Banco Santander. Between May and July 2009, according to OFAC, JBT reimbursed JBT AeroTech Spain for: (1) payments that the Spanish sister company made to a freight forwarder for IRISL’s shipping services and (2) fees that the sister company paid Banco Santander for negotiating the letter of credit.
OFAC found that JBT did not voluntarily disclose the apparent violations and that its management was aware of conduct leading to some of the apparent violations. The settlement, a reduction from the base penalty of $670,000, reflects, among other factors, OFAC’s determination that JBT took remedial action and cooperated with OFAC in the investigation.
Find out more by reading OFAC’s enforcement notice.