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Enforcement Release: July 19, 2021
Alfa Laval Inc. Settles Potential Civil Liability for Apparent Violations of the Iranian Transactions and Sanctions Regulations
Alfa Laval Inc. (“AL U.S.”), a company located in Richmond, Virginia, has agreed to pay $16,875 to settle its potential civil liability for apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (“ITSR”), on behalf of its former subsidiary (now an operating unit) Alfa Laval Tank, Inc. (“AL Tank”), located in Exton, Pennsylvania. AL U.S.’s ultimate parent company is Alfa Laval AB, which is headquartered in Sweden. The apparent violations were committed between May 2015 and March 2016 when AL Tank, which manufactures and sells storage tank cleaning equipment, referred a known Iranian business opportunity to its foreign affiliate in Dubai. The foreign affiliate then orchestrated a scheme to export goods from the United States to Iran and did so...
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1) Refer to Civil Enforcement Information - Alfa Laval Middle East Ltd., for consolidated commentary on the Alfa Laval Middle East Ltd. portion of the case. BIS issued a single penalty to both Alfa Laval Inc. and Alfa Laval Middle East Ltd. (Settlement Agreement (BIS) - Alfa Laval Middle East Ltd. and Alfa Laval Inc.) OFAC, however, issued separate penalties to the U.S. person and it's UAE affiliate.
As it relates to the referral part of the penalty (560.208), the facts illustrate a textbook example of "referral" as "facilitation," i.e., the facilitation of a transaction by a foreign person that a U.S. person would be prohibited from engaging in directly. The export-related violations, however, are far more notable. Here, OFAC charges a violation of 560.204...