Civil Enforcement Information (FOV) - B Whale Corporation, a Member of the TMT Group of Shipping Companies

Date issued: Feb. 03 2017

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TURBOFAC Commentary (2204 words)

Notes:

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Finding of Violation Notice - B Whale Corporation, a Member of the TMT Group of Shipping Companies (2014 unpublished version); Finding of Violation Notice - B Whale Corporation, a Member of the TMT Group of Shipping Companies (2017, public).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...