Civil Enforcement Information - Eagle Shipping International (USA) LLC

Date issued: Jan. 27 2020

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TURBOFAC Commentary (2868 words)

Consolidated Comment on the Eagle Shipping International (USA) LLC Case

1) BASES FOR LIABILITY - JURISDICTION

i) The "U.S. Person Issue" - Foreign Entities With U.S. Headquarters and the Status of the Marshall Islands

The entity charged with the violations was "a Marshall Islands company with its headquarters in Stamford, Connecticut." For the reasons below, we are of the view that the basis for the assertion of jurisdiction over the company was the involvement of the individual U.S. persons in the activities at issue. The legal basis for jurisdiction was not that the company was incorporated in the Marshall Islands, and it was not that the company was headquartered in the U.S.

Even though the Marshall Islands has a "Compact of Free Association" with the United States, we do not understand OFAC to consider the Republic of the Marshall Islands to constitute a “jurisdiction...