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ENFORCEMENT INFORMATION FOR AUGUST 16, 2019
Atradius Trade Credit Insurance, Inc. Settles Potential Liability for Apparent Violations of the Foreign Narcotics Kingpin Sanctions Regulations: Atradius Trade Credit Insurance, Inc. (“ATCI”) of Hunt Valley, Maryland, a trade credit insurer licensed to operate in the state of Maryland, is a subsidiary of Atradius N.V. ATCI has agreed to remit $345,315 to settle its potential civil liability for two apparent violations of the Foreign Narcotics Kingpin Sanctions Regulations, 31 C.F.R. Part 598. The Office of Foreign Assets Control (OFAC) has determined that ATCI did not make a voluntary self-disclosure of the Apparent Violations, and that these Apparent Violations constitute a non-egregious case. The total base penalty amount for the apparent violations was $590,282.
On May 5, 2016, OFAC designated Grupo Wisa, S.A. (Grupo Wisa) and the Soho Mall Panama pursuant to the Foreign Narcotics Kingpin Designation Act,...
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1) BLOCKED DEBT GENERALLY
This appears to be the first ever reported enforcement action resulting from the assignment and/or collection of a debt in which a blocked person has an interest.
When a blocked person is either a creditor or a lender in connection with a debt, the blocked person has an "interest" in that debt, meaning that all activities with respect to the debt constitute a "dealing in" property in which a blocked person has an "interest." This means that the payments on the debt cannot be made (when the blocked person is lender), payments cannot be accepted (when the blocked person is the creditor), and the debt cannot be refinanced or transferred to a third party. In addition, OFAC evidently considers that "negotiation" with respect to the debt, e.g. negotiating the refinancing of the debt or transfer of the debt, is a...