Cuba Politics

OFAC Enforcement update - Great Western Malting to pay $1.3million fine

Posted July 10, 2012 by publisher in Cuba Politics.

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.

Member Comments

No comments have been posted yet.