OFAC Enforcement Against Va. Forwarder and Fl. Shipper

I. Virginia Forwarder

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a Finding of Violation to DNI Express Shipping Company (“DNI”), incorporated in McLean, Virginia, for a violation of § 501.602 of the Reporting, Procedures and Penalties Regulations, 31 C.F.R. part 501 (RPPR) as to the provision of farm equipment to Sudan. Specifically, DNI violated § 501.602 of the RPPR by providing information to OFAC during the pendency of OFAC’s investigation, including a subpoena response, that contained contradictory, false, materially inaccurate, materially incomplete, and misleading statements.

OFAC considered the following to be aggravating factors:

(1) DNI, through counsel, demonstrated reckless disregard for its U.S. sanctions requirements by failing to provide accurate and complete information in response to an OFAC Administrative Subpoena;

(2) DNI, and its owner, facilitated both the shipment and attempted shipment of goods to Sudan and provided financing for such shipments. Accordingly, DNI had actual knowledge that its responses to OFAC’s Administrative Subpoena concerning the facilitation of the shipment and attempted shipment of goods to Sudan and related financing were false, materially inaccurate, materially incomplete, and misleading;

(3) After supplying OFAC with responses that were false, materially inaccurate, materially incomplete, and misleading, OFAC gave DNI the opportunity to correct or clarify its original responses. However, DNI failed to appropriately amend its responses and instead confirmed its original responses; and

(4) By providing false, materially inaccurate, materially incomplete, and misleading statements, DNI did not fully cooperate with OFAC’s investigation.

For more information, please visit the following web notice.

II. Florida Shipper

Separately, OFAC issued a issued a Finding of Violation to Southern Cross Aviation, LLC (“Southern Cross”), incorporated in Florida and with offices in Florida and North Carolina, for a violation of the RPPR. OFAC stated it had reason to believe that Southern Cross was recently involved in the sale of several helicopters destined for Iran via an Iranian businessman based in Ecuador.  Southern Cross violated § 501.602 of the RPPR by failing to provide complete information to OFAC in response to an Administrative Subpoena issued to Southern Cross.

OFAC considered the following to be aggravating factors:

(1) Southern Cross demonstrated reckless disregard for its U.S. sanctions requirements by failing to provide accurate and complete information in response to an OFAC Administrative Subpoena;

(2) Southern Cross had actual knowledge or reason to know of the conduct that led to the violation in this instance; and

(3) Southern Cross did not fully cooperate with OFAC’s investigation.

For more information, please visit the following web notice.

New information on OFAC Civil Penalties and Informal Settlements is now available.

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