Great Western Malting Co. settles apparent violations of Cuban Assets Control Regulations
Great Western Malting Co. (“Great Western”), of Vancouver, Washington, has agreed to pay $1,347,750 to settle apparent violations of the Cuban Assets Control Regulations.
The apparent violations by Great Western occurred between August 2006 and March 2009, when it performed various back-office functions for the sales by a foreign affiliate of non-U.S. origin barley malt to Cuba.
The base penalty amount for the apparent violations was $5,990,000.
This matter was not the subject of a voluntary disclosure to OFAC and the apparent violations constitute a non-egregious case.
The settlement amount reflects OFAC’s consideration of the following facts and circumstances
Great Western is a large, sophisticated entity
Great Western did not have an adequate OFAC compliance program in place at the time of the violations
A number of the violations involved transactions with Specially Designated Nationals (SDNs) in Cuba
Some of the violations involved transactions which involved an SDN vessel
Great Western has no history of prior OFAC violations; Great Western substantially cooperated with OFAC, including entering into a statute of limitations tolling agreement
Lastly, had the the subject goods been shipped from the United States, they would have been eligible for an OFAC license.