On 29 October 2014, OFAC announced that Bupa Insurance Company, Bupa Worldwide Corporation and USA Medical Services Corporation, all based in Miami, Florida, and affiliates of a UK healthcare group, agreed to pay $128,704 to settle potential civil liability for providing insurance and insurance support services to narcotics-related Specially Designated Nationals (“SDNs”) and, in two cases, making reimbursement payments to a policyholder for medical treatment in Cuba. OFAC asserts that Bupa “misinterpreted” the scope and application of OFAC’s regulations and, consequently, did not monitor or screen its policyholders or their dependents and providers against the SDN List. In total, OFAC identified 39 apparent violations.
OFAC determined that Bupa voluntarily self-disclosed the apparent violations and that they constituted a non-egregious case. According to OFAC’s announcement, the settlement amount reflects that Bupa acted with reckless disregard for US sanctions, Bupa failed to exercise a minimum degree of caution or care to avoid the conduct that led to the apparent violations, Bupa had actual knowledge or reason to know that its policyholders were SDNs, Bupa’s conduct harmed US sanctions objectives, and Bupa did not appear to have an OFAC compliance program. Mitigating these considerations, Bupa had not been penalized by OFAC in the five years preceding the earliest apparent violation, Bupa has taken steps to implement an OFAC compliance program, and Bupa substantially cooperated with OFAC’s investigation, including by executing and then extending an agreement tolling the statute of limitations.