According to OFAC, the manufacturer violated the ITSR 74 times when its Italian and Turkish subsidiaries exported products to, and engaged in trade transactions with, Iran, and when U.S.-person employees facilitated the Iran-related business. OFAC alleged that after Iran sanctions updates in 2012 under EO 13628, which prohibited U.S.-owned or -controlled entities from conducting business with Iran, the manufacturer's foreign subsidiaries continued to sell the manufacturer's products to Iran.
According to OFAC, the manufacturer's managing director for Europe - a U.S. person - helped to devise a plan to continue selling products to Iran indirectly through third-party distributors while avoiding referencing Iran in related documents. The manufacturer claimed that it realized the Iran-related business was not in compliance with the ITSR in 2016, only after OFAC issued General License H pursuant to the Iran nuclear deal. General License H relaxed certain prohibitions on dealings of foreign subsidiaries with Iran, and likely would have permitted the conduct that the manufacturer's subsidiaries had been engaged in - impermissibly - for years.
OFAC determined that the manufacturer's conduct constituted a "non-egregious" case. Taking into consideration, among other factors, the manufacturer's cooperation and voluntary self-disclosure of the violations, OFAC agreed to a settlement amount of $824,314.
- OFAC Enforcement Release: OFAC Settles with Whitford Worldwide Company, LLC for Its Potential Civil Liability for Apparent Violations of the Iranian Transactions and Sanctions Regulations
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