Enforcement Release: British American Tobacco p.l.c.

Date issued: Apr. 25 2023

Last substantive commentary amendment:
Apr. 03 2026

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TURBOFAC Commentary (3837 words)

Consolidated Comment on the British American Tobacco p.l.c. Settlement

[2026-04-04 update - read in light of OFAC's 2026 Sham Transactions Guidance. The below has not yet been updated to reflect the issuance of the Sham Transactions Guidance].

1) BACKGROUND

The British American Tobacco (“BAT”) case is precedential in a number of ways. Of particular note, it is the highest fine ever imposed by OFAC against an entity that is not a financial institution. It also advances a novel "interest" determination and "causing" theory of liability.

As is common with other largest civil penalties imposed by OFAC, this penalty was announced concurrent with a parallel criminal proceeding handled by the DOJ. However, the vast majority of the OFAC penalty issued here was "deemed satisfied by payment of a greater amount in satisfaction of penalties assessed...