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 Treasury Announces Settlement of a Potential $51 Million Civil Liability with Fokker Services B.V. for Apparent Sanctions Violations


6/5/2014
 

Treasury Action Addresses Company’s Activities Involving Iran and Sudan Sanctions Programs


WASHINGTON – Today, the U.S. Department of the Treasury announced a settlement with Fokker Services B.V. (FSBV), The Netherlands, of the company’s potential $51 million civil liability in connection with alleged violations of U.S. sanctions on Iran and Sudan. Today’s action is the result of an exhaustive investigation by Treasury’s Office of Foreign Assets Control (OFAC) along with other Federal agencies. As part of the settlement, FSBV will satisfy its liability with the payment of a $10.5 million civil monetary penalty to OFAC and the Department of Commerce’s Bureau of Industry and Security (BIS), a forfeiture of an additional $10.5 million pursuant to a deferred prosecution agreement reached with the Department of Justice’s U.S. Attorney’s Office for the District of Columbia (USAO), and the acceptance of responsibility for its egregious conduct involving over 1,150 alleged violations of U.S. sanctions.


“By illegally exporting aircraft spare parts to designated countries, FSBV flagrantly violated U.S. sanctions laws and this illicit activity will not be tolerated,” said OFAC Director Adam J. Szubin. “Treasury is committed to holding accountable anyone who undermines those efforts and to deterring others from undertaking similar conduct.”


From 2005 to 2010, FSBV indirectly exported or re-exported aircraft spare parts to Iranian or Sudanese customers, which FSBV either specifically procured from or had repaired in the United States, or that were U.S-origin and required the issuance of a license by a Federal agency at the time of shipment.

The actions addressed in today’s settlement include 1,112 apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560, and 41 apparent violations of the Sudanese Sanctions Regulations, 31 C.F.R. part 538.


As is standard practice, OFAC worked closely with its counterparts at other government agencies in the investigation of this matter. This settlement of FSBV’s potential civil liability of $51 million is satisfied by a $10.5 million civil penalty paid jointly to OFAC and BIS, a $10.5 million forfeiture pursuant to a deferred prosecution agreement with the USAO, FSBV’s acceptance of responsibility for its criminal conduct and that of its employees, and adherence to all settlement conditions imposed by the Federal agencies involved.

For more information regarding OFAC regulations, click here.


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