Archive for the ‘OFAC’ Category

“Global Shipping Company Agrees to Pay $374,000 to OFAC”

Wednesday, October 5th, 2011 by admin

By R.C. Burns
Reprinted by permission

August 23, 2011:  CMA CGM (America) LLC http://www.cma-cgm.com/ recently agreed http://www.treasury.gov/resource-center/sanctions/CivPen/Documents/08162011.pdf to shell out $374,400 to the Office of Foreign Assets Control (“OFAC”) to settle charges that it accepted payments for shipping services provided by its foreign parent company, CMA CGM, or its foreign affiliates, in connection with shipments between third countries and Cuba, Iran, or Sudan. Notice that there were no allegations that CMA CGM (America) itself shipped goods to Cuba, Iran, or Sudan, but only that it was involved in perfectly legal shipments by its foreign parent and affiliates to those countries. Ah, yes, the OFAC facilitation doctrine rears its ugly head again. Under that doctrine, a U.S. person can be held liable if it facilitates transactions by foreign persons that aren’t illegal but would be illegal if engaged in by U.S. persons.

Even though CMA CGM (America) did not voluntarily disclose the violation, the agency cited a number of mitigating factors in reducing the penalty from its base level of $640,000, including cooperation with the investigation, agreeing to toll the statute of limitations, the absence of prior penalties, and the adoption of a compliance program. Interestingly, OFAC also said this:

[S]ome of the goods exported from third countries to Cuba and Iran may have qualified as agricultural/medical products under the Trade Sanctions Reform and Export Enhancement Act of 2000 and, thus, may have been eligible for a license.

This statement may be slightly misleading. Under OFAC and BIS rules, agricultural products may be shipped from foreign ports to Cuba by U.S. owned or controlled companies only if they are 100 percent U.S. origin, which is not likely to have been the case for any foreign shipments of agricultural products.

R. Clifton Burns, Esq.
Bryan Cave LLP, Wash DC, 202-624-3949
Source:  Export Law Blog, www.exportlawblog.com

10 Shipping Companies & 3 Individuals Affiliated with Iran’s National Shipping Line- Denied

Wednesday, July 13th, 2011 by Anna Barone

Continuing efforts to target the financial underpinnings of the Islamic Republic of Iran Shipping Lines (IRISL), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the designation of 10 shipping companies and three individuals affiliated with IRISL. Responding to Iran’s continued efforts to evade sanctions and its ongoing creation and use of new front companies, subsidiaries, and affiliates to protect IRISL and to advance its proliferation activities, today’s actions targeted IRISL’s operations in the United Arab Emirates (UAE), Singapore, China and the United Kingdom (UK).
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Available Customer Service/Export Compliance Position

Tuesday, July 5th, 2011 by Danielle McClellan
Basic Purpose

Responsible for the administration of customer service issues, customer communications and customer requests and orders on a daily basis. Maintain and ensure integrity of all customer data in the business systems, including customer property, orders and associated dollars.  Assure that all customer requests for quotes are properly managed in the PTS system. Responsible for maintaining and ensuring accurate backlog, orders, and market segmentation data.

Position Specification
Education/Experience

  • An Associates or Bachelors degree with a minimum of 5 years related industry work experience.
  • Solid understanding of military and commercial export compliance regulations.
  • Demonstrated ability to effectively and professionally communicate with all levels in the organization, vendors and customers.
  • Understanding of pricing models.
  • Proven negotiation skills.
  • Strong verbal and written communication skills.
  • Strong computer skills with working knowledge of MS Office and Access.
  • Proven team-work capabilities and experience.
Additional Requirements

  • Understanding of the Fourth Shift or Syteline ERP system.
  • Able to handle and resolve customer complaints and problems and escalate when required.
  • Willing and able to develop long-term relationships internally and externally.
  • Attention to detail.
Functional Scope

The Customer Service Representative provides support to both the internal and external customers of the company.  This position plays an active role in the maintenance and management of the various business systems. Success in this role will require a proactive approach and the ability to create and implement process improvements to ensure that the systems and processes are as robust as possible to provide superior service to the customers.

Duties and Responsibilities

  • Responsible for the accurate and timely management of all sales order activity.
  • Ensure all sales data is accurate and complete in order to maintain order, market and backlog reporting integrity including schedule and associated dollars.
  • Responsible for raising export compliance concerns to the DECA or DECA backup when required.
  • Serves as a central point of contact for customer inquiries. Provides customers with updated order and delivery status.
  • Responsible for inputting data (RFQs, pricing, status, etc) into the PTS (Proposal Tracking System) and ensuring that all data is accurate and complete and up to date.
  • Provides engineering with request for quote information required to initiate estimating process.
  • Performs contract review and order acceptance process. Controls and maintains master contracts/ purchase order files.
  • Assists with the configuration control process.
  • Performs the EDI transaction conversion to the business system. Tracks changes in delivery dates, prices and handles terminations.
  • Maintains customer information in the various business systems.
  • Responsible for disseminating Terms and Conditions, special shipping instructions, configuration changes and quality requirements throughout the organization.
  • Assists accounting with invoicing and collection issues.
  • Review Customer Scorecards.
  • Perform other duties as required by the business and as instructed by supervisor.

Essential Functions of Position

Interpersonal Skills

  • Must be able to communicate clearly and effectively with all levels of personnel within the organization and the customer.
  • Must be able to communicate orally and/or in writing as to work requirements, work in progress, and/or work completion
  • Must be able to follow complex instructions and/or directions. May require ability to decide on a course/sequence of action

Schedule and Planning

  • Must be able to schedule and organize time effectively to satisfactorily complete assigned tasks and functions.

Physical Effort

  • Minimal physical effort
  • May be required to travel occasionally to customer premises or corporate office.
  • Operate personal computer.

Working Conditions

  • Primarily work in office areas with exposure to shop floor.
  • Generally responsible for the safety and clean up of own work area.

Disclaimer

  • The above information on this job description has been designed to indicate the general nature and level of work performed by employees within this classification. It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibility and qualification required of employees assigned to this job.

Contact Pamela R. Daly regarding this position at:

Barnes Aerospace

169 Kennedy Rd

Windsor, CT 06095

P: 860-687-5270

F: 401-228-0823

pdaly@barnesaero.com

Power of Prefix: OFAC Warns Iranian Shipper’s Games

Tuesday, May 3rd, 2011 by Anna Barone

The Office of Foreign Assets Control (OFAC) is issuing a special advisory to alert shippers, importers/exporters and freight forwarders to practices used by the Islamic Republic of Iran Shipping Lines (IRISL) and companies acting on its behalf to evade U.S. and international economic sanctions. These practices, which hide the involvement of IRISL in shipping transactions, include:

  • Using container prefixes registered to another carrier
  • Omitting or listing invalid, incomplete or false container prefixes in shipping container numbers
  • Naming non-existent ocean vessels in shipping documents.

Examples of container prefixes that have been used by IRISL and either belong to another carrier or are fabricated include:

  • IRSU: (belongs to another carrier)
  • XBIU: (belongs to another carrier)
  • ALXU: (fabricated)

What Can You Do?

  • Exercise enhanced due diligence to ensure you do not unwittingly process fraudulent shipping documents or facilitate prohibited activities.
  • Look for examples of container prefixes that are registered to designated entities affiliated with IRISL, such as SBAU and HDXU
  • Note that transactions involving U.S.-sanctioned entities cannot be processed through the United States or by U.S. persons unless there is an authorization from OFAC.
  • Be alert to the presentation of fabricated vessel names in trade documents.
  • Check the bona fides of unfamiliar entities issuing shipping documents.
  • Verify the accuracy of container numbers, particularly when unfamiliar with the issuer of the shipping documents by using an internet search term such as “shipping container validation.”

Additional information available:

http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/pages/20110331_33.aspx

http://www.strtrade.com/wti/wti.asp?pub=0&story=36735&date=4/4/2011

OFAC Issues Libya General License No. 4

Tuesday, May 3rd, 2011 by Anna Barone

On April 8, 2011, the Treasury/OFAC issued the following General License, regarding investment funds.

GENERAL LICENSE NO. 4: Guidance and General License with Respect to Investment Funds in Which There Is a Blocked Non-Controlling, Minority Interest of the Government of Libya.

Specifically, any interest of the Government of Libya or any person whose property and interests in property are blocked pursuant to Executive Order 13566 in an investment fund subject to U.S. jurisdiction is blocked property and may not be transferred or otherwise dealt in without authorization from the Office of Foreign Assets Control (“OFAC”).

U.S. persons are authorized to continue the normal operations of an investment fund that is organized, located, managed, or administered in the United States in which the Government of Libya and any person whose property and interests in property are blocked pursuant to Executive Order 13566 have both a non-controlling and a minority interest.

Normal operations include, but are not limited to:

  • Investment management functions
  • The purchase and disposition of portfolio investments.
  • The custody of portfolio investments
  • The making of payments owed by the investment fund to its managers
  • Other service providers, directors, government regulators, tax authorities, or investors whose property and interests in property are not blocked
  • The receipt of funds, securities, or other assets.

This authorization is subject to the following conditions:

  • Any payment or transfer of funds, securities, or other assets in the possession or control of a U.S. person to the Government of Libya or any person whose property and interests in property are blocked pursuant to Executive Order 13566 may only be directed or made into a blocked account at a financial institution in the United States in the name of the blocked person.
  • Transfers of funds, securities, or other assets by a U.S. person between blocked accounts created or funded pursuant to paragraph (a)(1) in its branches or offices are authorized provided that (i) no transfer is made from an account within the United States to an account held outside the United States, and (ii) a transfer from a blocked account may only be made to another blocked account held in the same name.
  • No immediate financial or economic benefit is accessible or made available to the Government of Libya or any other person whose property and interests in property are blocked pursuant to Executive Order 13566.
  • U.S. persons shall not:
    • Make any loans to, or on behalf of, the Government of Libya or any person whose property and interests in property are blocked pursuant to Executive Order 13566
    • Debit a blocked account for repayment of a loan or as setoff for a debt owed by the Government of Libya or any person whose property and interests in property are blocked pursuant to Executive Order 13566.

Reports must be submitted on a monthly basis providing an accounting of the value of the Libyan interest in the investment fund, as well as an explanation of any change from the previous report, to the Office of Foreign Assets Control, Sanctions Compliance & Evaluation, U.S. Department of the Treasury.

More Information Available:

http://www.treasury.gov/resourcecenter/sanctions/Programs/Documents/libya2_gl4.pdf

Export Compliance Training? Important? You betcha!

Monday, April 4th, 2011 by John Black

The risks of fines of hundreds of thousands — or even millions — of dollars for violations make export compliance important.  The complicated, arcane, and voluminous regulations that impose incredible burdens on your day-to-day business activities make export compliance difficult.  A thorough and effective multi-level company training program makes a reasonable level of export compliance achievable.

A company needs three levels of training (more…)

OFAC Penalties

Friday, February 18th, 2011 by Danielle McClellan

OFAC has issued its monthly enforcement report and it looks like Discover Financial Services, Well Fargo Bank, N.A. and an unnamed individual were all imposed penalties last month. (more…)

U.S. Targets Foreign Financial Institutions for ‘Causing’ Violations of Sanctions Regulations

Tuesday, July 20th, 2010 by admin

By: Christopher R. Wall and Thomas M. deButts

The U.S. Department of Justice and the New York District Attorney’s Office, together with the Office of Foreign Assets Control and federal and state bank regulators, have brought a number of cases in 2009 – 2010 against foreign financial institutions that clear dollar transactions through the United States involving prohibited entities and individuals under U.S. sanctions regulations. In the past, banks not subject to U.S. jurisdiction have generally avoided penalties under these regulations. The U.S. Government, however, has widened its enforcement to target financial institutions outside the U.S. for allegedly “causing” U.S. persons to violate U.S. sanctions regulations. (more…)

Management Consultant Facing 30 Years in Prison for Iran Violations

Friday, February 19th, 2010 by Danielle McClellan

A former McKinsey and Co. management consultant is currently facing over 30 years in prison after violating the International Emergency Economic Powers Act (IEEPA) and several other violations involving unlicensed money transmitting. Mahmoud Reza Banki, a US citizen, provided money transmitting services to residents of Iran by operating a “hawala” which allows money to be transferred without physically crossing through the banking system. Basically customers transfer money to a “hawala operator” in one country, and then those funds (less any fees) are distributed to recipients in another country by a “hawala associate” on that end. Banki was a hawala operator and received funds from individuals in Saudi Arabia, Kuwait, Latvia, Slovenia, Russia, Sweden, the Philippines, the US and many other countries. (more…)

Credit Suisse Gets $536 Million Fine

Friday, February 19th, 2010 by Danielle McClellan

OFAC recently announced its largest sanctions policy ever…$536 million. Credit Suisse AG, a Switzerland-based bank agreed to the momentous fine after processing 5,000 electronic funds transfers (EFTs) on behalf of banks and individuals in Cuba, Iran, Sudan, and Burma among other countries. (more…)