Australian freight forwarding company agrees to pay over $6 million to settle violations of sanctions regulations
Toll Holdings Limited (“Toll”), an international freight forwarding and logistics company headquartered in Melbourne, Australia, has agreed to pay $6,131,855 to settle its potential civil liability for 2,958 apparent violations of multiple OFAC sanctions programs. The apparent violations occurred when Toll originated or received payments through the U.S. financial system involving sanctioned jurisdictions and persons. These payments were in connection with sea, air, and rail shipments conducted by Toll, its affiliates, or suppliers to, from, or through the Democratic People’s Republic of Korea (DPRK), Iran, or Syria, or the property or interests in property of an entity on OFAC’s list of Specially Designated Nationals and Blocked Persons. The settlement amount reflects OFAC’s determination that Toll’s apparent violations were non-egregious and voluntarily self-disclosed. This case highlights that foreign companies who use the U.S. financial system to engage in commercial activity must take care to avoid transactions with OFAC sanctioned countries and persons.
U.S. companies agree to settle violations of Cuban sanctions regulations
Newmont Corporation (“Newmont”) is a multinational mining firm headquartered in Denver, Colorado with operations and assets across the globe. Newmont has agreed to pay $141,442 to settle potential civil liability relating to Newmont subsidiary Newmont Suriname’s purchase of Cuban-origin explosives and explosive accessories from a third-party vendor, in apparent violation of the Cuban Assets Control Regulations. Newmont wholly owned, controlled, and managed Newmont Suriname, f/k/a Surgold, during the period in question. The settlement amount reflects OFAC’s determination that Newmont and Newmont Suriname’s conduct was non-egregious and voluntarily self-disclosed.
United States targeting entities and individuals evading sanctions on Russia
Russian Harmful Foreign Activities Sanctions Regulations 31 CFR part 587 GENERAL LICENSE NO. 28 Authorizing Certain Transactions Involving Public Joint Stock Company Transkapitalbank and Afghanistan (a) Except as provided in paragraph (c) of this general license, all transactions involving Public Joint Stock Company Transkapitalbank (TKB), or any entity in which TKB owns, directly or indirectly, a 50 percent or greater interest, that are ultimately destined for or originating from Afghanistan and prohibited by Executive Order (E.O.) 14024 are authorized through 12:01 a.m. eastern daylight time, October 20, 2022. (b) Except as provided in paragraph (c) of this general license, U.S. financial institutions are authorized to operate correspondent accounts on behalf of TKB, or any entity in which TKB owns, directly or indirectly, a 50 percent or greater interest, provided such accounts are used solely to effect transactions authorized in paragraph (a) of this general license.
U.S. fact sheet, general license related to Russia’s invasion of Ukraine
The U.S. Department of the Treasury’s (Treasury) Office of Foreign Assets Control (OFAC) is issuing this Fact Sheet to make clear that U.S. sanctions issued in response to Russia’s further invasion of Ukraine do not stand in the way of, agricultural and medical exports, nongovernmental organization (NGO) activities, Coronavirus Disease 2019 (COVID-19) relief, the free flow of information, humanitarian assistance, and other support to people impacted by Russia’s war.
U.S. issuance of Russia-related general license
Russian Harmful Foreign Activities Sanctions Regulations 31 CFR part 587 GENERAL LICENSE NO. 26 Authorizing the Wind Down of Transactions Involving Joint Stock Company SB Sberbank Kazakhstan or Sberbank Europe AG (a) Except as provided in paragraph (b) of this general license, all transactions ordinarily incident and necessary to the wind-down of transactions involving Joint Stock Company SB Sberbank Kazakhstan or Sberbank Europe AG (collectively, “the blocked Sberbank subsidiaries”), or any entity in which the blocked Sberbank subsidiaries own, directly or indirectly, a 50 percent or greater interest, that are prohibited by Executive Order (E.O.) 14024 are authorized through 12:01 a.m. eastern daylight time, July 12, 2022.
Expanded U.S. sanctions against Russia and Belarus under EAR
In response to the Russian Federation’s (Russia) ongoing aggression in Ukraine following its further invasion of the country, as substantially enabled by Belarus, this rule expands license requirements for Russia and Belarus under the Export Administration Regulations (EAR) to all items on the Commerce Control List (CCL). It also removes license exception eligibility for aircraft registered in, owned or controlled by, or under charter or lease by Belarus or a national of Belarus.
U.S. sanctions, enforcement actions against Russian airlines and state-owned enterprises
Bureau of Industry and Security (BIS) Assistant Secretary for Export Enforcement Matthew S. Axelrod issued orders denying the export privileges of three Russian Airlines – Aeroflot, Azur Air, and UTair – due to ongoing export violations related to comprehensive export controls on Russia imposed by the Commerce Department. These three Temporary Denial Orders (TDOs) terminate the right of these airlines to participate in transactions subject to the Export Administration Regulations (EAR), including exports and reexports from the United States. Today’s TDOs are issued for 180-days and may be renewed.