OFAC announces settlement with trade credit insurer for sanctions violations

Financial Crimes Department of Treasury OFAC Sanctions Of Interest to Non-US Persons Settlement

On August 16, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $345,315 settlement with a Maryland-based trade credit insurer for two alleged violations of the Foreign Narcotics Kingpin Sanctions Regulations. The settlement resolves potential civil liability for the company’s receipt of payment from the liquidation of assets belonging to a company that was added to the List of Specially Designated Nationals and Blocked Persons in 2016. According to OFAC, by accepting the assignment to collect debt owed by the designated company and receiving payment, the company violated sanctions regulations.

In arriving at the settlement amount, OFAC considered various mitigating factors, including (i) the company has not received a penalty or finding of a violation in the five years preceding the transactions at issue; (ii) the company voluntarily conducted a full internal review, cooperated with OFAC during the investigation, and undertook remedial efforts to minimize the risk of similar violations from occurring in the future; and (iii) the company agreed to implement certain compliance commitments to ensure the strength of its sanctions compliance program.

OFAC also considered various aggravating factors, including that the company did not voluntarily self-disclose the issue to OFAC and the company failed to undertake measures to confirm the assignment of debt and acceptance of payment was permitted under existing authorizations.