Settlement Part of Combined $100 Million Settlement for Company’s
Involving Iran, Cuba, and Sudan Sanctions Programs
WASHINGTON – Today
the U.S. Department of the Treasury reached the largest ever settlement outside
of the banking industry for apparent violations of U.S. sanctions on Iran,
Sudan, and Cuba with Weatherford International Ltd. and a number of its
subsidiaries and affiliates (Weatherford). As part of a combined $100 million
settlement with several federal government partners, the Treasury Department
announced a $91 million agreement with Weatherford to settle its potential
liability for these apparent violations. Today’s action is the result of an
exhaustive investigation by Treasury’s Office of Foreign Assets Control (OFAC),
along with other Federal agencies, which are also levying civil and criminal
penalties against Weatherford for its egregious actions which compromised U.S.
“Today’s action underscores our
deep commitment to target those who seek to violate our sanctions. Our
dedicated staff of investigators will continue their important work to
identify, expose, and take action to combat sanctions evasion wherever we find
it,” said OFAC Director Adam J. Szubin.
From 2003 to 2007, Weatherford
conducted extensive oilfield services business in Iran which involved the
direct or indirect exportation of goods, technology, and services to Iran, and
the facilitation of those transactions by U.S. persons, totaling $23,001,770.
From 2005 to 2008, Weatherford conducted extensive business that provided
oilfield equipment and services in which the government of Cuba or blocked
Cuban nationals had an interest, including travel-related transactions by
Weatherford employees to and from Cuba, totaling $69,268,078. From 2005 to
2006, Weatherford conducted oilfield services business in Sudan which involved
the direct or indirect exportation of goods, technology, and services from the
United States to Sudan, totaling $295,846.
These actions were apparent
violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R.
part 560; the Cuban Assets Control Regulations, 31 C.F.R. part 515; and the
Sudanese Sanctions Regulations, 31 C.F.R. part 538.
Under the settlement agreement,
Weatherford is required to undergo external audits of its efforts to comply
with the relevant U.S. sanctions law for calendar years 2012, 2013, and 2014.
As is standard practice, OFAC
worked closely with its counterparts at other government agencies in the
investigation of this matter. Today’s OFAC settlement is simultaneous with
Weatherford’s settlements with the United States Attorney’s Office for the
Southern District of Texas, the Department of Commerce’s Bureau of Industry and
Security, the Department of Justice’s Criminal Division, Fraud Section, and the
United States Securities and Exchange Commission.
$91 million settlement with OFAC will be deemed satisfied by the $50 million in
criminal fines and monetary penalties paid by Weatherford International Ltd.
and two of its subsidiaries pursuant to their agreements with the U.S.
Attorney’s Office, as well as a $50 million civil penalty paid to the
Department of Commerce, for the same pattern of conduct.