U.S. announcement: Hong Kong company to pay $5.2 million to settle violations of Iranian sanctions
The settlement amount reflects the Hong Kong company’s remedial response and cooperation with OFAC.
Hong Kong company agrees to pay $5.2 million
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a company based in Hong Kong, China agreed to remit approximately $5.2 million to settle its potential civil liability for apparent violations of the Iranian transactions and sanctions regulations.
According to today’s OFAC release [PDF 207 KB], the apparent violations occurred when the company—engaged in offshore trading and cross-border trade financing—made U.S. dollar payments through U.S. financial institutions for Iranian-origin high density polyethylene resin (HDPE) from its bank in Hong Kong to the HDPE supplier's banks in Thailand. This caused the U.S. financial institutions that processed the funds to engage in and facilitate prohibited financial transactions related to goods of Iranian origin.
OFAC determined that the violations were non-egregious and voluntarily self-disclosed. The settlement amount also reflects the Hong Kong company’s remedial response and cooperation with OFAC.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal T: 612-305-5533 E: jlibby@kpmg.com |
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.