According to OFAC, a subsidiary of the U.S. shipping company entered into a chartering agreement that allowed a Singaporean company to transport sand from Burma to Singapore on the U.S. shipping company's vessel. Prior to the ship's departure from Burma, the Singaporean company provided the subsidiary of the U.S. shipping company with lading documents listing the shipper as Myawaddy Trading Limited ("Myawaddy"), an entity designated by OFAC. According to OFAC, the U.S. shipping company applied for an OFAC license to carry the sand from Burma, but the vessel departed Burma and discharged its cargo in Singapore before OFAC responded. The U.S. shipping company later applied for a second OFAC license to carry additional Myawaddy sand cargoes, and continued shipping sand from Myawaddy for nearly five months while the application was pending. After OFAC refused to grant the second license, the U.S. shipping company continued carrying sand cargoes procured from Myawaddy.
OFAC determined that $1,796,400 worth of sand was transported on 36 separate voyages in apparent violation of the Burmese Sanctions Regulations. The U.S. shipping company self-disclosed the apparent violations and implemented a detailed sanctions compliance program. As a result, OFAC reduced the penalty it would accept to settle the matter from the statutory maximum of $9,000,000 to $1,125,000.
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