OFAC - Swedish company settles claims of violations of Iran sanctions 

October 28: The Treasury Department’s Office of Foreign Assets Control (OFAC) announced that a Swedish company agreed to pay $125,000, on behalf of its U.S. and German subsidiaries, to settle attempts to transfer high-pressure water jetting pump units used for industrial pipe cleaning and other purposes to Iran, in violation of the Iran sanction provisions under U.S. law.

According to the OFAC release [PDF 23 KB], the German subsidiary (acting as a sales agent for the pumps) on two occasions in 2009 attempted to export nine pumps from the United States to Iran, and also exported, re-exported, sold, or supplied the pumps from the United States to Germany, with knowledge (or reason to know) that the pumps were intended specifically for re-exportation to Iran.

The U.S. Customs and Border Protection seized the nine pumps (and partial payment for the pumps) upon redelivery from Europe to the United States.

This matter was not voluntarily self-disclosed, and OFAC reported that the apparent violations did not constitute an egregious case.

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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