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

Date issued: Apr. 25 2023

Last substantive commentary amendment:
May. 08 2023

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TURBOFAC Commentary (3924 words)

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

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 by DOJ arising out of the same pattern of conduct during the same time period". More specifically, the OFAC penalty was effectively zero for the conduct accounting for $503,263,807 of $508,612,492...