A North Carolina corporation settled with OFAC after agreeing to pay $107,691.30 for potential civil liability due to alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The company allegedly exported medical sealant and samples to a UAE distributer with knowledge or reason to know that the exports were to be reexported to Iran. Mitigating factors of OFAC’s civil penalties included the fact that the exports involved medical end-use products that were likely eligible for a specific license, the company had no prior OFAC sanctions history making it eligible for “first violation” mitigation of up to 25 percent, the company took remedial steps including the implementation of an OFAC compliance program, the company cooperated with OFAC’s investigation and agreed to toll the statute of limitations for a total of 513 days.
This case provides an important reminder – review all possible general license very closely. The ITSR actually create licenses for the exportation and reexportation of certain medicine and medical devises and included on the “List of Basic Medical Supplies.” Although the export and reexport of certain basic medicines and medical supplies is permitted by general license, most medical devices require a specific license for export to Iran.
Additional information on this settlement is available here.