Case Study: Shipping & Logistics Company Fined Almost $1 Million for Sanctions Violations

On 2 May 2019, the Office of Foreign Assets Control (OFAC) released a settlement agreement in which MID-SHIP, a New York-headquartered global shipping and logistics company was fined $871,837 for Iran sanctions violations in 2011.

The settlement provides a clear example of how a lack of sound due diligence processes and policies, including vessel sanction screening, can result in significant fines.

Over the course of nine months in 2011, OFAC outlines how MID-SHIP processed five electronic transfers, totaling approximately $472,861, linked to payments associated with two blocked vessels identified on OFAC’s List of Specifically Designated Nationals and Blocked Persons (“SDN List”).

The blocked vessels in question were owned or controlled, directly or indirectly, by the Islamic Republic of Iran Shipping Lines (IRISL).

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