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ENFORCEMENT INFORMATION FOR AUGUST 6, 2019
PACCAR Inc Settles Potential Civil Liability for Apparent Violations of the Iranian Transactions and Sanctions Regulations: PACCAR Inc (“PACCAR”), a company headquartered in Bellevue, Washington, has agreed to pay $1,709,325 to settle potential civil liability for 63 apparent violations of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR) by DAF Trucks N.V. (“DAF”), a wholly owned subsidiary of PACCAR headquartered in Eindhoven, the Netherlands. The apparent violations of § 560.215 of the ITSR occurred on three occasions between the approximate dates of October 2013 and February 2015, when DAF sold or supplied 63 trucks to customers in Europe that it knew or had reason to know were ultimately intended for buyers in Iran. The transactional value of the 63 trucks was $5,426,428.
PACCAR is engaged primarily in the manufacture and sale of trucks and related...
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1) KNOW OR REASON TO KNOW; LEGAL BASES FOR THE PENALTY
This enforcement action continues OFAC's trend of enforcing violations of 560.215, for violations of the ITSR by foreign entities owned or controlled by U.S. persons. The legal bases for the enforcement action are fairly straightforward. A foreign company subject to the ITSR as a result of 560.215 cannot "knowingly" engage in a transaction "with" a person subject to the jurisdiction of the Government of Iran to the extent the transaction would be prohibited if engaged in by a U.S. person.
Here, 560.204 prohibits exports to Iran of goods where the exporter has "knowledge or reason to know" that the export is "intended specifically" for Iran. This applies to direct and indirect exports from third countries to Iran for persons subject to...