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ENFORCEMENT INFORMATION FOR February 3, 2017
OFAC Issues a Finding of Violation to B Whale Corporation, a Member of the TMT Group of Shipping Companies, for a Violation of the Iranian Transactions and Sanctions Regulations: OFAC has issued a Finding of Violation to B Whale Corporation (BWC), a company based in Taipei, Taiwan and a member of the TMT Group of shipping companies (TMT), for a violation of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR). Between on or about August 30, 2013 and on or about September 2, 2013, BWC violated §§ 560.201 and 560.211 of the ITSR when its vessel, the M/V B Whale, conducted a ship-to-ship transfer with, and received 2,086,486 barrels of condensate crude oil from, the vessel M/T Nainital, a vessel owned by the National Iranian Tanker Company and identified on OFAC’s List of Specially Designated Nationals and Blocked...
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*Finding of Violation Notice - B Whale Corporation, a Member of the TMT Group of Shipping Companies (2014 unpublished version); Finding of Violation Notice - B Whale Corporation, a Member of the TMT Group of Shipping Companies (2017, public).
1) THE "UNITED STATES PERSON; U.S. PERSON" DETERMINATION (560.314)
Both of the provisions that OFAC cites as having been violated here--560.201 (prohibited imports) and 560.211 (prohibited dealing in blocked property)--were, at the time of the violation, applicable to both U.S. persons (560.314) and non-U.S. persons owned or controlled by U.S. persons (560.215). Here, the Taiwanese shipping company that bought oil from an NITC-owned company in a ship-to-ship transfer was not owned or controlled by U.S. persons. As is evident, the theories of liability on an extraterritorial basis come from two novel interpretations of...