OFAC FINES CALIFORNIA COMPANY FOR SHIPPING SPARE PARTS TO UAE FOR IRAN

The Office of Foreign Assets Control (OFAC) closely watches sales, from American companies to countries that are known transshipment points for Iran, and often imposes substantial fines & penalties upon violators. This week's name and shame* goes to a Gardena, California supplier of spare parts and supplies used upon offshore drilling rigs.

The company named sent eight shipments of parts to a United Arab Emirates company, which were intended for an offshore drilling rig located in Iranian waters. The right owner and operators are both located in Iran, and both are blocked pursuant to E.O. 13382.

OFAC imposed a civil penalty of $ 97,695, and the company was required to implement an OFAC compliance programme. Note that the company did not disclose the transactions to OFAC, it learnt of the violations through other sources.

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* Enforcement Information for February 1, 2013.