An animal nutrition company involved in the sales of agricultural commodities outside of the United States agreed to settle OFAC charges for violations of the Cuban Assets Control Regulations.
According to OFAC, the animal nutrition company, BIOMIN America, Inc., coordinated agricultural commodity sales to a Cuban company, resulting in 44 apparent violations. In particular, BIOMIN America allegedly routed the Cuba-related business through its foreign affiliates, developing "a transaction structure that it incorrectly determined would be consistent with U.S. sanctions requirements."
OFAC emphasized that the transactions at issue could have been conducted in a manner consistent with an existing general license, or the company could have applied for a specific license from OFAC. OFAC noted that sanctions violations frequently arise from a misinterpretation or lack of understanding of the agency's regulations, as was the case with respect to BIOMIN. OFAC advised companies subject to U.S. jurisdiction to maintain an appropriate sanctions compliance program, and to seek "appropriate advice and guidance" when contemplating business that may be impacted by U.S. sanctions programs.
In light of the fact that the transactions may have been eligible for authorization, as well as BIOMIN America's voluntary self-disclosure, compliance enhancements, and other factors, OFAC determined that the apparent violations constituted a "non-egregious" case, and agreed to a settlement amount of $257,862.
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